Supply Curve

Shifts in the Supply Curve: The supply curve can shift to the left or right for a variety of reasons, including consumer expectations, government policies, changes in production costs, technological advancements, changes in the prices of related goods. It is important to note that a shift in the supply curve for a good or service does NOT come from a change in the price of that good or service. A shift to the left is known as a decrease in supply, where supply is lower than what it previously was at all price levels, while a shift to the right is known as an increase in supply, where supply is higher than what it previously was at all price levels.

Note that an increase/decrease in supply (which occurs due to non-price determinants) is not the same as an increase/decrease in quantity supplied (which occurs due to a change in price).