Which of the following terms refers to factors that can shift the supply curve?

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Boost your EPF exam prep. Study with flashcards and multiple choice questions on supply and demand concepts. Clarify key ideas with explanations to excel in your test!

Supply shifters are specific factors that cause the supply curve to move either to the left or to the right. When these factors change, they affect the quantity of a good or service that producers are willing to sell at various price levels. Common examples of supply shifters include changes in production costs, technology advancements, government regulations, and the number of suppliers in the market. For instance, if production costs decrease due to cheaper raw materials or improved technology, the supply curve shifts to the right, indicating an increase in supply. Conversely, if a natural disaster reduces the number of producers, the supply curve may shift to the left, indicating a decrease in supply. Understanding these dynamics is crucial for analyzing how changes in external conditions can impact market equilibrium and pricing.

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