What can lead to shifts in the supply curve?

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The supply curve represents the relationship between the quantity of a good that producers are willing to sell and the price of that good. A shift in the supply curve occurs when a factor other than the good's price itself changes, leading to an increase or decrease in supply at every price level.

Advancements in technology are a significant determinant of supply, as they can improve production efficiency, reduce costs, and enable producers to create more output using the same or fewer resources. When technology improves, suppliers can produce more goods at a lower cost, effectively shifting the supply curve to the right.

Additionally, changes in input prices—such as the cost of raw materials, labor, or utilities—also influence the supply curve. If input prices decline, producers can manufacture goods more cost-effectively, again shifting the supply curve to the right. Conversely, if input prices increase, the supply curve would shift to the left, indicating a decrease in supply.

In summary, advancements in technology and variations in input prices directly affect a producer's ability to supply goods, thus causing shifts in the supply curve, making this option the correct choice.

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