oboloo Glossary

Supply Curve Shift To The Right

oboloo Glossary

Supply Curve Shift To The Right

A decrease in the supply of a certain good or service will cause its supply curve to shift to the right. This means that at a given price, a greater quantity of the good or service is now being supplied. Common causes for such a shift include an increase in production costs associated with the production of the good, an increase in inputs required for production, or new technology allowing for more efficient production processes. Ultimately, this shift means that producers must charge more money to cover the cost of producing more of the good or service.