So just like we did with demand, we're going to do the same thing with supply, thinking of shifts to the right as good things happening for supply and shifts to the left as bad things happening for the supply of our product, right? So, when something good happens for the supply of the product, we are going to shift to the right. For example, what if the inputs, the things that we use to create the products, what if they get cheaper? That's going to shift our supply line to the right. That's a good thing for the supply and it'll shift to the right. I just want to make this quick note, if we have this price, and this is our quantity, we're at this price right here, p1. Notice, the price doesn't change, but what happens at this price? Originally, we were going to be at this quantity right here, supplying this quantity, but now, since whatever factor caused the supply to shift to the right, such as cheaper inputs, then at that same price, we're willing to create that much more quantity supplied. Notice, we're keeping the price constant there, but the quantity supplied is increasing because the supply curve shifted.
Just like that, let's do the opposite with the shifting left, right. This is when a bad thing happens to supply, like the input prices going up. So we would shift to the left in this case, and I'll draw a graph something like that, right, and we have effectively shifted to the left here. It's the same discussion there except now we would have a smaller quantity supplied at the same price. Cool, so this is how we're going to be shifting. Now, let's learn about what are those factors that are going to be shifting our supply. Alright, let's do it.