Explain two causes of a shift of a supply curve to the right.
One cause of a shift in the supply curve to the right could be a decrease in costs of production. If a firm has lower costs of production, such as labour, it will be able to supply more of a product at any given price therefore causing a shift to the right.Another cause of a shift of the supply curve to the right could be favourable weather conditions. If a business is selling crops then if the weather is good they will be able to grow and harvest more. This means at any given price they will be able to supply more, thus causing a shift in supply to the right.
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