A Change in Supply due to a Change in Non-Price Factors

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    A Change in Supply due to a Change in Non-Price Factors

    • Costs or production, size and nature of the industry, government policy and other uncontrollable factors can result in the change in supply of a product
    • This means that a different quantity is now being supplied at the same price
    • When this occurs, the supply curve is being shifted to either the left or the right
    • There are 2 possibilities:
      • An increase in supply, meaning that more will be supplied at the same price
        • g. tax reduction or technological advance – shift to the right
      • A decrease in supply, where less of a product is being supplied at the same price
      • g. increased tax or a more expensive factor of production – shift to the left
      • A change in supply must not be confused with a change in the quantity supplied, which is due to the price of the product alone

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