Non Price Factors of Supply

There are various factors other than price that change the Supply of a product or service and hence cause a shift in its Supply Curve.

Cost of Production:

Cost of production is the amount of money used in producing a good. It might change due to the changes in the price of any of the factors of production (i.e. raw materials)

Improvement in the Technology:

Use of latest technology in production would improve the productivity and hence cost of production per unit would decrease and producers would be able to supply more of that product.

Taxes:

Tax: a payment given to the government

Indirect tax: tax imposed on goods and services

Subsidies:

Subsidy: a payment given by the government, to encourage the production or consumption of a product.

A subsidy given to a producer provides a financial incentive for them to supply more as producers would have more capital to produce.

Weather Conditions:

They affect particularly agricultural products.

If the weather is good around harvest the supply of that crop would be more and vice versa if the weather is bad around harvest the supply of that crop would be less.