Cost of Inputs

 

A change in the cost of inputs will affect the quantity which can be produced at each price. If the cost of inputs rises (e.g. increase in raw material costs), less can be produced for each price and the supply curve will shift to the left.

 

 

However, if the price of inputs falls (e.g. a decrease in the price of fuel), more can be supplied at each price and the supply curve will shift to the right.