So I know you guys are excited to be here because 1, we're done with our demand shifts and supply shifts, but 2, I know you are really excited to see the rest of this page fill out. So here I've got your big daddy shift summary page where I've got listed all our demand shifts and all our supply shifts all in one place. This will be really helpful for you when you're first starting out in the demand and supply shifts, having everything in one place, but I think you will start to get a lot more comfortable, and I'm hoping you won't even need this information by the time it comes to the exam.
Cool, so let's go ahead and look at the right side. We went through the demand side earlier. Let's look at the supply side now. So with directly proportional, we were able to get a pretty cool acronym here just like we had for the demand. Here we've got NESTs, right, so our directly proportional ones make this NESTS acronym, so the first one being nature. So when there's a good event in nature, that's going to increase our supply, and remember all of these are vice versa. So I've listed only 1 because you don't really need them both there, but if there's a bad event in nature, the supply of the good would go down right, so just keep that in mind.
And the next one here we've got the producer expectations of future price to hire new workers. So remember, this was the tricky one. This was the weird one that I wouldn't expect too often to come up, but they would have to be explicit about it if it were to come up on a test. So if they're going to be hiring new workers because of the expectations, then the supply of the good will increase. Next, we have subsidies. So when the subsidies for a product increase, we are going to see the supply of that good increase as well.
Let's scroll down a little bit. We've got technology. So when technology increases and generally with technology, you're only gonna see it increasing. It would be pretty rare to see a decrease in technology. The supply is going to increase in that situation, and lastly, if the number of suppliers increases, we are also going to see an increase in supply. Cool.
And now let's go down here to the inversely proportional ones, and we also have a nice little acronym here, SITE. So the first one being substitute in production, so when the price of a substitute in production, remember that's something else we could be producing instead of that product. When that price goes up, the supply of our good is gonna go down.
Input prices. When the input price, the things that we need to make our product, labor and material, when the input prices go up, the supply of the good is gonna go down. When taxes increase, that's like an increased cost for the company, supply is going to go down, and lastly, the more common producer expectations is producer expecting future price to change and they're going to put stuff in storage. So if they're storing the current production that means that the supply of the good is going to decrease. Cool.
Alright, and down here last but not least, we've got our change in price. So remember when we have a change in price, it's not gonna draw a new supply curve, right. We're only going to move along the supply curve. So here we have a graph with both a demand curve and a supply curve on it and assuming we had started at let's say this blue point in the middle and now we moved up to that red point, right, so that was just because of a change in price, we just moved along the supply curve, we don't draw an entirely new one. I put this in here because this does get tricky, this is where they love to steal points from you on the exam is dealing with these changes in price rather than shifting the curve.
Alright, so let's go ahead and do some practice problems. Keep this sheet handy and if you don't need it, even better, but I would say that at first while we're first trying these out, definitely try and keep the sheet around. Cool? Alright, let's go ahead and do that.
