Reasons for the shift of supply curve to the left.
Reasons for the shift of supply curve to the left.
- Increase in the cost of production
- Shortage of factors of production
- Decrease in the levels of technology
- Unfavourable government policies such as an increase in tax
- Future expectation of an increase in price
- Unfavourable natural factors e.g. floods
- Wrong timing. E.g agricultural products are only available during certain times.
- Withdrawal of firms from the industry
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