14. Explain the shift in supply curve
Answers
Answer:
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.
Explanation:
The factors other than price affect the supply curve in a different manner. These factors cause the supply curve to shift. Of course, this shift is also categorized into two which are- a leftward and rightward shift.
Note that, this shift occurs because the price is constant when studying the effect of other factors on supply. A rightward shift indicates a positive effect on the curve whereas a leftward shift indicates a negative effect on the supply curve. We have already studied the various factors other than price and their relationship with the supply of a commodity. The factors can either have a direct or an inverse relationship with the quantity of commodity supplied.