What are the influences on provision of a good or service that create an increase in supply?

Answer:
A shift in supply means that the whole supply curve shifts to the right or to the left. A shift to the right in the supply curve means that producers are willing to supply more goods or services to the consumer at each price level. A shift to the left in the supply curve means that producers are prepared to provide fewer goods or services to the market at each price level.

Influences that will cause a shift to the right (an increase) in a supply curve are listed below.

1. A decrease in the price of one or more inputs of production
   For example, there is an abundance of tobacco on the farm markets and since tobacco is the key ingredient in cigarettes, the entire supply curve for cigarettes shifts to the right.
2. An increase in the price of a complement
   For example, the price of cigars increases, and since cigars are a complement to cigarettes, the entire supply curve for cigarettes shifts to the right.
3. A decrease in the prices of a substitute in the production process
   For example, a decrease in the market price of corn acts as an incentive for tobacco producers to use more land to grow tobacco.
4. A technological advance in cigarette production
   For example, more efficient machinery is employed in the production process for cigarettes.
5. An increase in the number of producers
   For example, new markets in developing countries open up for cigarette producers, more producers enter the industry, and the entire supply curve shifts to the right.
6. A change in the price expectations of producers
   For example, producers expect that prices for a product may be lower next year and they consequently speed up production now to make more total revenue.