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

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Master the EPF Supply and Demand Basics Test. Enhance your understanding of supply and demand with interactive quizzes and detailed explanations. Get ready to excel in 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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