What factors can shift the supply curve?

The correct answer focuses on factors that directly impact the supply of goods and services in an economy, which are production costs, technological advancements, and the number of sellers in the market.

When production costs change, for example, if the cost of raw materials increases, producers may supply less at every price level, causing the supply curve to shift to the left. Conversely, if production costs decrease, the supply curve shifts to the right, as producers are willing to supply more at each price point.

Technological advancements improve efficiency in production, allowing producers to create more output with the same or fewer inputs. This increase in productivity causes the supply curve to shift to the right, indicating a greater quantity supplied at every price.

The number of sellers in a market also affects supply. If more firms enter the market, the overall supply increases, leading to a rightward shift in the supply curve. Conversely, if businesses exit the market, the supply decreases, shifting the curve to the left.

These factors are critical because they affect the willingness and ability of producers to supply goods and services at varying price levels, directly influencing market dynamics.