SUPPLY PENDULUM

SHIFT IN THE SUPPLY CURVE 

Supply pendulum means shift of the supply curve. The market supply curve holds other things constant, When one factor changes the supply curve shift. In other words shift of supply means the supply curve moves rightward or leftward depending on the change in the cost of production and other related factors.

FOR EXAMPLE suppose the price of the sugar falls.

Sugar is required for the production of candy, so fall in the price of sugar will result in profit of candy selling and seller is willing to increase the production of candy.

RIGHT SHIFT AND LEFT SHIT OF SUPPLY CURVE

Rightward shift: If the cost of the production or cost of any raw material decline, the low cost will result in the increase in the production as the seller is willing to sell a larger quantity. This will increase the supply and the supply curve shifts right or outward.

Leftward shift: If the cost of the production or cost of any raw material increase, the high cost will result in the decrease in the production as the seller is willing to sell less due to less Profit. This will decrease the supply and the supply curve shifts left or inward.

Other variables that can shift the supply curve:-

1. Input Prices 
2. Technology
3. Expectation
4. Seller Behavior 

Image Ref:- https://www.businesstopia.net/economics/micro/supply-curve-movement-shift