The causes of shifts in the supply curve
Several factors can cause producers to supply more or less at every price level. These factors shift the entire supply curve left or right.
Real World
The 2021 global semiconductor shortage raised production costs for car manufacturers like Toyota, causing the supply curve for new vehicles to shift left — fewer cars were supplied at every price level.
Exam Focus
Distinguish clearly between a movement along and a shift of the supply curve — confusing the two is the most penalised mistake in supply questions.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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