F3 - SEM1 - Change in Supply - 2E

Question 1

What are the 2 possible directions when the supply changes?

2E Change in Supply

Answer 1

• Increase in supply - the quantity supplied increases at the same price. The supply curve moves rightward
• Decrease in supply - the quantity supplied decreases at the same price. The supply curve moves leftward

2E Change in Supply

Question 2

What are the other factors that change the supply?

2E Change in Supply

Answer 2

• number of sellers / goods for sales - number of sellers / goods for sales increases, the supply increases; number of sellers / goods for sales decreases, the supply decreases
• cost of producing / selling the good - cost of producing / selling the good increases, the supply decrease; cost of producing / selling the good decreases, the supply increases

2E Change in Supply