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2.1.6—Supply curve shifts

Syllabus
9708–2026–2027
Objective
2.1.6
Level
AS

A supply curve shifts when production conditions change

A supply shift means firms offer a different quantity at every price because production conditions changed. Technology, input costs, taxes, subsidies, weather, firm numbers and expectations are common causes.

A right shift represents greater supply at each price; a left shift represents less. The direction must follow the mechanism, not a memorised list.

A drought can shift agricultural supply left; a productivity-improving irrigation system can shift it right, though the final effect may depend on costs and scale.

A rise in the product’s own price is not by itself a supply shift; it is a movement along supply.

ConceptA-Level CAIE Economics AS