Explain two causes of a shift of a supply curve to the right.

One cause of a shift in the supply curve to the right could be a decrease in costs of production. If a firm has lower costs of production, such as labour, it will be able to supply more of a product at any given price therefore causing a shift to the right.Another cause of a shift of the supply curve to the right could be favourable weather conditions. If a business is selling crops then if the weather is good they will be able to grow and harvest more. This means at any given price they will be able to supply more, thus causing a shift in supply to the right.

Answered by Fred W. Economics tutor

5478 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

What affect does increasing demand have on price levels and consumer surplus?


How does the exchange rate mechanism affect aggregate demand in the UK?


Explain the concept of price elasticity


Explain one benefit of international trade for UK consumers.


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2024

Terms & Conditions|Privacy Policy