← A Level Economics Revision · All Shift in supply questions · Home
A-Level Economics · Shift in supply diagram question
What could cause this rightward SHIFT of the supply curve?
The diagram
The answer
A fall in firms' production costs. A non-price factor changed: cheaper inputs or better technology mean more is supplied at EVERY price. The classic trap, and it costs marks every year: a change in the good's OWN price moves you ALONG the supply curve — an extension or a contraction. Only non-price factors (costs, technology, taxes, subsidies, the number of firms) SHIFT the curve.
Test yourself properly
This is one of 6 questions on the shift in supply diagram — every corner lettered, every wrong answer diagnosed.
▶ Play the shift in supply game All questions & answers
George Chantry
Professional A-Level Economics tutor · Oxford PPE First, 3 prizes in economics · 7,000+ hours one-to-one