Understanding Determinants of Supply in Microeconomics

In the previous segment, you learnt about the law of supply, which states that everything else being equal, with an increase in the price of a good, the quantity supplied of that good increases. The reverse also holds true. 

After that, you learnt about the supply curve, which plots the quantity supplied of a good at certain price points.
 

In this segment, you will learn about the factors that affect supply and supply curves. So, let’s watch the upcoming video and learn more about them from Chris. 

The table given below summarises the factors that affect the supply curve. 

An increase or a decrease in the price of a product will not shift the supply curve; instead, it will lead to an upward or a downward shift of the equilibrium point along the curve, respectively.