ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Supply curve shift: Changes in production cost and related factors can cause an entire supply curve to shift right or left. This causes a higher or lower quantity to be supplied at a given price. The ceteris paribus assumption: Supply curves relate prices and quantities supplied assuming no other factors change.

Detailed explanation-2: -An increase in factor prices should decrease the quantity suppliers will offer at any price, shifting the supply curve to the left. A reduction in factor prices increases the quantity suppliers will offer at any price, shifting the supply curve to the right.

Detailed explanation-3: -A change in supply leads to a shift in the supply curve, which causes an imbalance in the market that is corrected by changing prices and demand. An increase in the change in supply shifts the supply curve to the right, while a decrease in the change in supply shifts the supply curve left.

Detailed explanation-4: -Falling costs If costs fall, more can be produced, and the supply curve will shift to the right. Any change in an underlying determinant of supply, such as a change in the availability of factors, or changes in weather, taxes, and subsidies, will shift the supply curve to the left or right.

Detailed explanation-5: -A change in the determinants will shift the supply curve. Change in supply refers to a shift in the supply curve due to the influence of the supply shifters, whereas a change in quantity supplied is the movement along the supply curve due to a change in the price of the good, keeping other factors constant.