Table 6.1 Factors That Shift Supply

When this happens . . .. . . supply increasesBut when this happens . . .. . . supply decreases
When the price of an input falls . . .
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. . . supply of the good increases.
When the price of an input rises . . .
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. . . supply of the good decreases.
When the price of a substitute in production falls . . .
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. . . supply of the original good increases.
When the price of a substitute in production rises . . .
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. . . supply of the original good decreases.
When the price of a complement in production rises . . .
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. . . supply of the original good increases.
When the price of a complement in production falls . . .
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. . . supply of the original good decreases.
When the technology used to produce the good improves . . .
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. . . supply of the good increases.
When the best technology used to produce the good is no longer available . . .
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. . . supply of the good decreases.
When the price is expected to fall in the future . . .
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. . . supply of the good increases today.
When the price is expected to rise in the future . . .
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. . . supply of the good decreases today.
When the number of producers rises . . .
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. . . market supply of the good increases.
When the number of producers falls . . .
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. . . market supply of the good decreases.