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

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Study for the EPF Supply and Demand Test. Use flashcards and multiple choice questions with hints and explanations. Prepare confidently with key concepts and questions to ace your exam!

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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