Question

Describe three costs of production that are supply shifters.

Answer 1

Government subsidies, Taxes and cost of raw material.

Step-by-step explanation:

Government subsidies, Taxes and cost of raw material are the three cost of production which acts like supply shifter. Because the rise in government subsidies will decrease the cost of production and as a result, the supply will increase. Consequently, the supply curve will shift rightwards. Moreover, the rise in taxes and the price of raw material will raise the cost of production. hence, the supply curve will shift leftwards.

Answer 2

Regulation, Taxes, Subsidies

Step-by-step explanation:

Regulation, taxes, and subsidies are three government actions that shift the supply curve as they add additional costs to production.