Question

What will make the supply line shift? please provide an example and explain in very basic terms so that i can understand and rewrite the answer.

Answer 1

Answer : A shift in the supply curve due to other factors than price . There are various factors which shift the supply curve as follows :

• Input prices : If the price of raw material has been rises than the supply has been shift to leftward as supply has been decrease drastically.
• Improvement in technology :If there is an improvement of technology than supply has been increased which resulted in an increase in the production I.e shift of supply curve to the right ( vica versa)
• Government policy : If the government policy has been liberalised than the supply has been increased as well as shift of the curve to the right and vica versa.
• Size of the market: If size of the market has been increased drastically than there is shift in the supply curve to the left and Vica versa.
• Expectations : The increase in production shift the supply curve to the right and Viva versa  

There are various factors other than price has been shift the supply curve either right or left.Example : production of crop increased when factor input price has been decreased or new improved technology has been applied.