One factor that can shift our supply is the cost of the inputs for the product. Changes in the price of the inputs such as the cost of labor or the cost of the raw materials being put into the product are going to affect the goods supply. This should logically imply that if the input prices are increasing for our product, then the supply of our product is going to decrease, right? These are inversely proportional. One goes up, the other goes down, so you can imagine if the input prices were to go down, then the supply would increase. That makes sense, right? If it got cheaper to make it, we're going to make more of them. Alright. And I want to note right here, just as I've been making, is that we're not making a change in price here, right. We are talking about prices, but this isn't a change in the price of the final product we're selling, right? This is a change in the input prices, what we're putting into the product. Cool.

Here are some examples of input price changes:

1. A very common one is when minimum wages increase. If minimum wage increases, that means that our supply will decrease, right? So, let's say wages up, supply down. This is pretty general and could work in pretty much any industry. If the labor cost goes up, you'll see the supply decrease.
2. Price of gasoline. This is a common input in a lot of product manufacturing. We need gasoline to fuel our machines, so if the price of gas goes up being an input into our product to run our machines or whatever it's going to be, we're going to see the supply go down. Conversely, if the price of gas were to go down, then that means our inputs got cheaper so our supply would go up.
3. Price of microchips. Let's say we make computers, so if the price of the microchip goes down, the supply of computers is going to go up. The inputs for the computer got cheaper, so the supply is going to increase.

Let's go ahead and do an example.