What factors can shift the supply curve and explain the impact of a change in one of these factors on the supply curve.

Different factors can shift the supply curve. It must be noted that changes in prices do not shift the supply curve, but causes a movement along the curve. In order to shift the curve, there must be changes in external factors that affect supply. 

Factors that can shift supply include: weather, cost of production, wages, government taxes/subsidies and  technology.

If the supply curve shifts to the right, there is an increase in supply and more is supplied at any given price. If the supply curve shifts to the left, there is a decrease in supply and less is supplied at any given price. 

For example if we consider favourable weather conditions, this will produce an increase in harvest for commodities such as wheat. This means there will be an increase in the supply, causing a shift to the right (outwards shift). At any given price more wheat can be supplied, therefore increasing quantity supplied. 

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