💰Prices of items do not cause changes in the quantity supplied
🛠️Cost of production and inputs can shift the supply curve
📈Technological advancements can increase the supply of a product
🏛️Government policies like taxes and subsidies affect supply
🔮Expectations about future prices can impact supply levels
Do changes in prices cause changes in supply?
—No, changes in prices are the result of changes in supply, not the cause. Supply shifts are driven by factors such as production costs, technology, government policies, and market conditions.
What factors can shift the supply curve?
—Factors such as changes in production costs, technological advancements, government policies, and expectations about future prices can shift the supply curve.
How do taxes and subsidies affect supply?
—Taxes can discourage production and shift the supply curve to the left, while subsidies can incentivize production and shift the supply curve to the right.
Can changes in the cost of production impact supply?
—Yes, changes in the cost of production, such as increases in input costs, can decrease the supply of a product. Conversely, decreases in production costs can increase the supply.
How do technological advancements impact supply?
—Technological advancements can lead to increased efficiency and lower production costs, resulting in an increase in the supply of a product.
00:00Prices of an item are not responsible for changing the quantity supplied of that item.
00:20Supply shifts to the right when sellers are willing to provide larger quantities of the product at every price point.
00:36Supply shifts to the left when fewer units will be supplied at each price.
00:45Various factors can shift the entire supply curve, including changes in the cost of production, technological advancements, government policies, and the number of qualified suppliers.
01:10Prices of substitutes or complementary goods can also impact supply.
01:31Expectations about future prices can influence the supply of a product.
01:51Taxes shift the supply curve to the left, while subsidies shift it to the right.
02:00Changes in production costs can decrease or increase the supply of a product.
