00:01
Hello, so too i'm going to answer your question about the elements that affect the supply curve for doing so first i write here what are the elements and then i'm going to show you what are the effects in the supply and demand course so this graph have in the vertical axis the prices and in the horizontal axis the quantities and the amount as you can see have a negative relationship which means that a higher price there will be less amount of individuals willing to pay that price and the supply have a positive relationship which means that a higher price, there will be more companies willing to offer that product.
00:37
So let's say the prices of input changes that will increase the cost of the company.
00:43
So if that increases, it would shift the supply to the curve red line.
00:48
That would mean that you consume less quantities and at a higher price.
00:53
If the prices reduce, let's say there is a technological innovation.
00:59
This would shift the supply to the right, reducing the cost.
01:02
And increasing the quantities consume.
01:05
If there are taxes, the taxes will do the other way around.
01:08
They will increase the cost and reduce the quantities.
01:12
The same for natural conditions...