Ceteris Paribus Conditions for Supply:
Prices of factors of
production (inputs in the production process): Example: Higher
energy prices will shift the supply curve to the left.
The number
of firms (suppliers): Example: If another firm or company starts to
produce and sell tools, the supply curve of tools will shift to the right
(supply will increase).
Weather: Example: Good
weather tends to create more crops.
Prices of related outputs: Example: If the
price of ice cream increases in the summer, I will shift my resources from the
production of milk to ice cream.
Expectations: Example: If I
expect that the demand for widgets will increase in the future, I will open a
widget stand to sell them.
· Subsidies: Example: A
government subsidy will increase the supply of a good or service; for example,
subsidies for low income housing.
·
Taxes: Example: A tax
increase will decrease the supply of a good or service.
Technology: Example: An
improvement in technology tends to increase efficiency and increase supply
(shift the supply curve to right).
Note: This is
not an exhaustive list, but the most common ceteris paribus conditions for
supply found in typical economics textbooks.