Think of a good or service that you have seen a change incre

Think of a good or service that you have seen a change (increase or decrease) in supply for and describe the situation. What has caused the increase in supply? Remember, a change in the price of the good itself only causes the quantity supplied change, not the supply itself.?

Solution

A change in supply implies that there is a shift in the supply curve. Consider the paddy or the rice supply for instance. This year there\'s is a reduction in the supply of rice due to the inadequate rains during the monsoon. Therefore, the decrease in supply caused by the improper rainfall caused the supply curve to shift to the left.