What causes a shift in supply


1.Changes in the following factors will cause changes in supply and shifts in the supply curve of a product Changes in the cost of factors of production

By far the largest determinant of supply is the cost of resources for production, i.e. payments made for raw materials and power supplies, wages for labour, and rents or leasing costs for buildings and machinert, etc.


2. Changes in the price of other goods and service

Price changes act as the signals to private sector firms to move their resources to and from the production of different goods and services. In a free market, resources are allocated to those goods and services that wil yield the most profit


3. Technological advance

Technical progress can mean improvements in the performance of machines, employees, production methods, management control, product quality, etc.


4. Business optimism and expectations

Fears of an economic downturn may cause some firms to move resources into the production of goods and services they feel will be less affected by a fall in consumer incomes and demand


5. Global factors

The supply of goods and services can be affected by many factors that cannot be controlled by producers, for example, sudden climatic change, trade sanctions, wars, natural disasters and political factors can have a material impact on the supply of many goods and service


Sumber :

  1. Anonim. (2014). United Nations. https://en.wikipedia.org/wiki/United_Nations (Diakses tanggal 17 January 2016)
  2. Moynihan. D & Brian Titey. (2015). Economics, A Complete Course for IGCSE and O Level: University of Cambridge International Examination.


Dan Moynihan & Brian Titey. (2015). Economics; A Complete Course for IGCSE and O Level. 2015. hlm 117




Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


Life is better in red

Love Math

Belajarlah memahami sesuatu dari berbagai sudut pandang

Streets of Nuremberg

Street | Urban | Travel | Photography by Marcus Puschmann

%d bloggers like this: