Principles of Macroeconomics / Unit 2 MAC 0114 short lesson, about 20 seconds
What Shifts Supply
Captions available
The idea
Supply shifts with anything that changes the cost of producing: input prices, natural conditions, technology, and government taxes, regulations and subsidies.
In practice
A tax raises cost and shifts supply left; a subsidy lowers it and shifts supply right.
Where people slip
Better technology shifts supply right because it lowers cost, so more is offered at every price.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Something wrong in this lesson? Flag it · Sources for Principles of Macroeconomics