Supply Curves: Real World Analysis (AQA A Level Economics)

In 2023, the supply of UK-grown tomatoes declined as a consequence of rising energy costs

• Energy prices increased due to supply chain issues, causing the cost of operating greenhouses to rise

An increase in the costs of production from imported energy results in a shift left of the entire supply curve from S₁ → S₂

• The price remains the same at P₁

• The quantity supplied falls from Q₁ → Q₂

Advances in technology have led to an increase in the supply of lettuce

• Greater mechanisation and innovations in genetically modified food increase productivity and output

Improvements in farming technology cause a shift to the right of the entire supply curve from S₁ → S₂

• Price remains the same at P₁

• The quantity supplied rises from Q₁ to Q₂