What are the two factors displayed on a supply curve?

Factors on Supply Curve

A supply curve in economics typically shows the relationship between the price of a good or service and the quantity supplied by producers. The factors that are displayed on a supply curve are:

The most significant factor displayed on a supply curve is the price of the good or service. As the price of a good or service increases, the quantity supplied by producers also tends to increase. This is because higher prices create a larger incentive for producers to supply more of the product to the market in order to maximize their profits.

Another factor that influences the supply curve is the availability and cost of inputs used in the production process. If the cost of inputs such as raw materials, labor, or technology increases, it may lead to a decrease in the quantity supplied of the final product, shifting the supply curve to the left. Conversely, a decrease in input costs can lead to an increase in supply.

These two factors, along with others such as technology, government regulations, and producer expectations, play a crucial role in determining the position and shape of a supply curve.