Supply reduction

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The Supply Curve Shifts

351 869 views | 3 Jan. 2015

This video explores

This video explores factors that shift the supply curve. How do technological innovations, input prices, taxes and subsidies, and other factors affect a firm’s costs and the price at which the firm is willing to sell a good? By answering these questions we have a better idea of how the supply curve will shift. This video walks you through examples and scenarios that illustrate this concept.


Supply and Demand 5-day HS unit plan: https://mru.io/finding-equilibrium-0c49c

Assessment questions: https://mru.io/principles-8a8e5

EconInbox, a free weekly email of class-ready news articles, videos, and more: https://mru.io/econinbox-9944e

More high school teacher resources: https://mru.io/high-school-06240

More professor resources: https://mru.io/university-teaching-1aaee


Next video—Exploring Equilibrium: https://mru.io/equilibrium-16c18

Practice questions: https://mru.io/supply-curve-4fb77

Full Microeconomics course: https://mru.io/principles-economics-14c38

sparkly yy

so if the price increases for inputs, the quantity supplied decreases?

Caitlyn Ryder

This took forever for me to get. I thought I was dumb. Not too dumb to look it up, though. Thanks for your help!


Concerning tax: Why does it necessarily increase the demand curve and not just the minimum amount a seller wants for his good/quantity? The input costs actually raise the cost for creating a good, however the tax does not - it simply lowers the sellers surplus.

James Washington Jr.

Great Teaching!!

Sarah Settenda

A very good video and the speed is just right.

Thank you for sharing.

sheikh spear

i love u man #no homo


lucid explanantion

Narayan Dhimal

Watching at school lol

esa khan

You are doing great

John Bebita

Illustrate what will happen to supply curve if the price of the dough which is the input price decreases.

Saif Al deen

يقول كلام نظيف وسهل ?

Sudharsini R

Thanks sir

Marginal Revolution University

Supply and Demand 5-day HS unit plan: https://mru.io/finding-equilibrium-66a84
Assessment questions: https://mru.io/principles-29b64
More high school teacher resources: https://mru.io/high-school-f4a7d
More professor resources: https://mru.io/university-teaching-9e230

Next video—Exploring Equilibrium: https://mru.io/equilibrium-a1e84
Practice questions: https://mru.io/69666
Full Microeconomics course: https://mru.io/principles-economics-c2f95

The Devil Ape

Thank you so much Sir. This Helped a lot.

Newton Rhapson

Just grow weed mate
More easy to grow and consumer willing to pay high

Guidance Fromafar

I thought as cost increase the supply increases because consumers are willing to pay more so suppliers are willing to produce more.... explain if im wrong plz... 

Dan Cacovean

great explanations

utopian intallect


Nandini A

Thanks! Love your videos!

Lawrence Grech

Really great stuff; easy to follow. Use it in class and saves a lot of explanation on the part of the teacher

David Tobillo

this video taught me more than my teacher in a semester

Natalya Chlimon

I wish you guys were my professors, I don’t understand anything my professor says?

Toxiic Pandawolf

I think your practice questions are down. Tried to submit my answers and they gave me an error code...

Cornish Home

But the increase does not mean the price goes down it means that the company makes more profit. Who doesn't get that "supply curve shift"????

Ricardo Sasso

I really think it was a bad exemple when you said that a new modified seed would allow supply to increase. If a modified seed would allow to use less fertilizer, the company would problably want to charge more in order to share the productivity gain with the costumer, hence an increase in price for the same quantity demanded is more likely. In addition, she would need to pay for the development of the seed and et cetera.

exodus24 z


dhillon pb22

Pls answer this ququestion
What effect does an increase in input price have on the supply curve of a commodity. Draw a diagram to explain the answer

Raju Nadar

simple teachings with appropriate examples

Ana Sofia Palacios

This video is my saving grace

tatyana grossett

This video was amazinggggg

marium khalid

easiest examples ...a good teacher thou

Carlos Aq

i thought he was saying weed

Calvin Dabos

consider other subjects as well... such as principles of management etc... really helpful videos

Kate Fletcher

Ready for my quiz! thanks so much

18BCS015 Iyyappan .v

Thanks you very much for your videos

Edward Dodson

This explanation of the response of supply to changes in price and taxation works well for labor, capital goods and consumer goods. But, what about nature? What about land, which has an inelastic supply curve? Absent a high annual tax on the rent of land, owners of land will often withhold land from the market as prices are rising. This is particularly the case when land held has been acquired decades or even centuries before. The holding cost is very low and there is no financial pressure or incentive to bring the land to market, even under a leasehold arrangement that would permit periodic increases in ground rent charges in response to the increased demand for land. Land markets are the achillees heel of the neoclassical assertion that price clears all markets.

Edward J. Dodson, M.L.A.
School of Cooperative Individualism

Supply reduction

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Supply Reduction VOTE RESULTS Soon ? Hydro Blockchain Ecosystem Protocols Party Bull Run Year 2021

73 views | 29 Jan. 2021

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Supply reduction

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Change in Quantity Supplied vs Change in Supply

48 708 views | 28 Dec. 2014


1 In the supply curve,

When price increases from $2 to $4,

Quantity increases from 10 to 20

From $4 to $6?

Quantity increases from 20 to 30.

The dot just moves along this curve.

In econspeak,

this movement is called change in quantity supplied,

When price changes,

we say there’s a change in quantity supplied.


2 Remember there are other factors affecting supply as well?


3 For instance, when price of eggs increases,

Producing cakes gets more expensive.

We’ll bake fewer cakes at every price.

At $2, at $4, at $6.

At every price.

So the entire supply curve shifts to the left.

In econspeak, we say this is a decrease in supply.

4 What if price of eggs decreases.

The cost of baking cakes decreases, profits increase,

So bake more cakes.

Supply increases (pause)

so the supply curve shifts right.

5 Let’s add the graphs into the summary.

When price increases, (pause 2s)

quantity supplied increases. (paus e 2s)

It’s a movement up the supply curve.

When price decreases, (pause 2s)

quantity supplied decreases. (pause 2s)

It’s a movement down the supply curve.

When any of these non-price factors change

in respective directions,

supply increases. (pause 1s)

So the supply curve shifts right.

When these factors change the other way,

supply decreases. (pause 1s)

So the supply curve shifts left.

6 So far, we’ve been talking about individual supply.

How do we derive the market supply?

7 In other words, how many cakes can the market supply?

If you like this video, remember to like and subscribe.

Next up: Market Supply.


What is the difference between change in quantity supplied (Qs) and change in supply(SS)? Why do we observe a point moving along the supply curve on some occasions but sometimes the entire supply curve shifts?

What is the difference between competitive supply and joint supply? How does revenue and cost affect profit? How does profit affect producers' behavior? Why does the supply curve slope upwards?

Watch this video to learn more about economics and microeconomics. Learn more about how the market works and how price helps us allocate resources to achieve allocative efficiency.

Abu Sayed


Bernie G

Thanx that was much more helpful than my economics book!

christian blake


Malek 2030

Keep moving


thank you

Daniaru Raion


Emmanuel Obeng

Nice to see n understand

w w

Nice explained, but not perfect. E.g. 1:09 lines shows that new price of cakes in quantity = 10 is 2 USD, but real new price will be 3 USD for quantity = 10 in supplier view.

Noam lima

i want to know the quantity of change

Marc-André Cloutier

Really good format. Love the structure and the feel of the video Thanks a lot

Minhaz Sammy

tnx i m from bangladesh