Business – 3.1 The nature of marketing – Demand and supply | e-Consult

Important supply‑shifting factors are:

• Production costs: A rise in raw‑material prices (e.g., steel for bicycles) raises marginal cost, reducing supply.
• Technology: Introduction of automated assembly lines can increase output at the same cost, shifting supply rightward.
• Number of sellers: Entry of new competitors into the market expands total industry supply of the product.