If the price of a product changes it will result in a new quantity supplied and a movement along the existing supply curve.
However, if another ‘determinant of supply’ changes it will result in a shift of the supply curve to a new position, to the right (an increase) or to the left (decrease).
In the following cases, draw an original supply curve (S) and a new supply curve to the left or right, and label it S1.
The supply of Economics textbooks following a fall in the cost of printing.
Ice cream, following a rise in the cost of milk.
DVD Players following the introduction of new technology by DVD manufacturers.
Underground travel following a strike by Tube drivers.
The world supply of oil following the discovery and refining of large oil reserves in Russia.
The supply of wine from France following the imposition of a tax on imported wine.
The supply of bread in the UK following the granting of a subsidy by the government to bread producers.