Write short notes on the following: Change in supply.

Write short notes on the following:

Change in supply.

Change in supply is caused due to the change in a variables other than the price of a good (i.e. the price of the good remains the same). These other factors can be technological advancements, change in the prices of inputs etc. Change in supply can be of two types namely, increase in supply and decrease in supply.

Increase in supply: There is an increase in supply due to the favourable changes in the determinants other than the price of the good. It is represented by a parallel rightward shift of the supply curve.


Decrease in supply: Decrease in supply refers to the fall in the supply, due to unfavourable changes in the determinants, other than price of a good (i.e. the price of the good remains same). It is represented by a parallel leftward shift of the supply curve.


 

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