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Study Notes

Shifts in Market Supply

GCSE, AS, A-Level
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 26 Jan 2019

The supply curve can shift position

If the supply curve shifts to the right, this is an increase in supply; more is provided for sale at each price

If the supply curve moves inwards, there is a decrease in supply meaning that less will be supplied at each price

Make sure that you understand the key factors that can bring about a shift in the supply curve for a product in a market

Key summary

Factors that will cause an outward shift of a market supply curve i.e. an increase in supply

  1. The entry of new producers into the market
  2. A government subsidy to cover some of the supply costs of firms
  3. A fall in the world price of imported components and raw materials
  4. A reduction in the size of an indirect tax on producers
  5. An improvement in labour productivity which lowers unit labour costs

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