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Supply - Coggle Diagram

- - - - Bigger image
  - - - A rise in price will cause an extension
      - A drop in price will cause and contraction
- - - - A increase in supply causes the curve to shift to the right
      - A decrease in supply causes the curve to shift to the left
  - - - Higher cost of production = fewer suppliers willing to produce and vice versa
    - - Decreases cost of production and increases amount produced
    - - Taxes on firms are a cost that firms have to pay to produce a certain product, so will not be willing to produce a product therefore lowering supply
    - - A subsidy given to the producers provides a financial incentive to supply more
    - - Changes in weather conditions affect particular agricultural products
      - The amount of agricultural products produced and available for supply also depend on health of livestock
    - - If one product becomes popular firms will divert their supplies from other products to that product causing its supply to increase and the supply of other products to decrease
    - - Natural disasters can result in a drastic decrease in supply of products
    - - The supply of some commodities like coal, gold, and oil is affected by discoveries of new sources
- - - - A fall in the price causes a contraction in supply, whereas a rise in the price causes an extraction in supply
        
        Causes in change of supply include : changes in the cost of production, improvements in technology, taxes, subsidies, weather conditions, health of livestock and crops, changes in the price of related products, disasters, wars and discoveries and depletion of sources
        
        An increase in supply shifts the supply curve to the right
        
        A decrease in supply shifts the supply curve to the left
        
        An increase in supply will lower the price and cause and extension in demand
        
        A decrease in supply will raise the price and cause a contraction in demand