Factors that may cause a shift of the supply curve

Discuss some of the factors that may cause a shift of the supply curve

Factors:

  • Cost of production (factor prices)
  • Government policy (taxation and subsidies)
  • Natural events (e.g weather)
  • Goals of the firm
  • Availability and cost of credit
  • Transport and communication
  • Prices of related products (substitutes and complements)
  • Technology
  • Future expectations
  • Changes in the supply of the product with which the product in question is in
    joint supply e.g Hides & Beef; petrol and paraffin.
  • Time


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