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Shifts in the Supply Curve

The supply curve for ice cream shows how much ice cream producers offer for sale at any given price holding constant all the other factors beyond price that influence producers decisions about how much to sell. This relationship can change over time which is represented by a shift in the supply curve. For example suppose the price of sugar falls. Because sugar is an input into producing ice cream the fall in the price of sugar makes selling ice cream more profitable. This raises the supply of ice cream: At any given price sellers are now willing to produce   larger quantity. Thus the supply curve for ice cream shifts to the right . Illustrates shifts in supply. Any change that raises quantity supplied   at every price such as a fall in the price of sugar shifts the supply curve to the right and is called an increase in supply. Similarly any change that reduces the quantity supplied at every price shifts the supply curve to the left and is called a decrease n s...