Shifts in Supply

S₀ is the original supply curve. A shift to S₂ (rightward) represents an increase in supply: at every price, producers are willing to sell more. A shift to S₁ (leftward) represents a decrease in supply: at every price, less is offered.

At the explored price, point J is on S₀, point M on S₂, and point L on S₁. Point K on S₀ at a higher price shows movement along the curve, caused by a price change rather than a shift.

Supply shifts are caused by changes in non-price factors: input costs, technology, number of sellers, expectations, taxes and subsidies, and natural conditions.