If a producer expects that the price of a product will rise in the future, they may choose to reduce current supply, storing goods to sell later at the higher price.

If a company has easy and affordable access to raw materials, it can produce more of its product at a lower cost. This increases the supply of the product in the market. Conversely, if access to raw materials is limited or expensive, the cost of production increases.

‍Major causes of supply chain disruption

Geopolitical Events. ...

Natural Disasters and Climate Change. ...

Pandemics and Health Crises. ...

Cybersecurity Threats. ...

Labor Disruptions. ...

Financial and Organizational Instability. ...

Technological Failures.

The market supply curve is a horizontal summation of all the supply curves of individual firms in the market. If the number of firms in a market increases, then the market supply curve will shift rightward as there will be more number of firms supplying more amount of output.

What Is Supply? Supply is a fundamental economic concept that describes the total amount of a specific good or service that is available to consumers. Supply can relate to the amount available at a specific price or the amount available across a range of prices if displayed on a graph.

The factors that may cause the supply curve to shift are:

Changes in input prices.

Innovations in technology.

Changes in prices of related goods.

Changes in the number of producers.

Changes in producers' expectations.

Government regulations, taxes, and subsidies.

The law of supply is a basic economic concept. It states that an increase in the price of goods or services results in an increase in their supply. Supply is defined as the quantity of goods or services that suppliers are willing and able to provide to customers.