SHIFTS OF THE SUPPLY CURVE

A shift in supply for a good or service will have an impact on both the equilibrium price and quantity.
A SHIFT TO THE RIGHT OF THE SUPPLY CURVE
If there is an increase in supply then the supply curve will shift to the right.
Any of the following will cause the supply curve to shift to the right

  •  decreases in wages or salaries   

  • decrease in an indirect tax..

  • higher productivity .

  • subsidy.

  • new technology .

  • mechanisation.

  • decrease in the cost of production.

  • decrease in price of a related good.
A shift to the right of the supply curve will mean that ...
  • equilibrium price will decrease.
  • equilibrium quantity will increase.

 
A SHIFT TO THE LEFT OF THE SUPPLY CURVE
If there is a decrease in supply then the supply curve will shift to the left.
Any of the following will cause a decrease in supply.

  •  increases in wages or salaries   

  • increase in an indirect tax such as GST.

  • a decrease in productivity .

  • increase in the cost of production for items such as increase

  • new technology .

  • mechanisation.

  • an increase in price of a related good.

 
A shift to the left of the supply curve will mean that ...
  • equilibrium price will increase.
  • equilibrium quantity will decrease.