Take the coffee farms of one region. Two different things can happen.
Scenario 1: the price changes
The price changes
Only the price of coffee changes. Nothing else.
Producers move along S
They offer more at a higher price on the same curve S.
Our example (made-up numbers)
| Price | Tonnes offered |
|---|---|
| €4 | 20 |
| €6 | 40 |
| €8 | 60 |
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Scenario 2: something else changes
Fertiliser gets cheaper for coffee farms
The price stays at €6, but producing costs less.
The whole curve shifts
More is offered at every price: S1 moves right to S2.
Our example (made-up numbers)
| Price | Tonnes offered before | Tonnes offered after |
|---|---|---|
| €6 | 40 | 60 |
| €4 | 20 | 40 |
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Remember it as: Own price: slide along. Anything else: shift.
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Seven things other than the price shift the whole supply curve. Here they are for coffee farms.
What shifts the supply of coffee
Costs of production rise
Pickers' wages rise, so each tonne costs more to produce.
Price of a good in competitive supply rises
Cocoa sells for more, so farms plant cocoa instead.
An indirect tax is added
A tax on every tonne raises each farm's costs.
A subsidy is paid
The government pays farms for every tonne, so costs fall.
Prices expected to rise
Farmers expect coffee to sell for more next season, so they store beans to sell then: fewer tonnes are offered now.
Technology improves
Disease-resistant plants grow more coffee from each hectare.
Number of firms rises
New farms start growing coffee, so more tonnes are offered.
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The points to remember
- Each one shifts supply at every price.
- Most work through costs.
Seen in texts: all cut supply
A shock
A storm, flood or strike.
Imported inputs cost more
A tariff or a weaker currency.
New regulations
Safety or pollution rules.
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A shift in supply moves the price. More offered at every price pushes the price down.
What happens to the price, step by step
Supply rises
Because of the new plants, producers now offer 60 tonnes at €6, not 40.
A surplus
Buyers still want only 40 at €6, so 20 tonnes are left unsold.
The price falls
Sellers cut the price to €5, where 50 tonnes are bought and sold.
Animated graph
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The points to remember
- Supply rises: a surplus at the old price, so the price falls and quantity rises.
- Supply falls: a shortage at the old price, so the price rises.
Quick reminder
- Curves: D, S1 and S2 (S2 to the right)
- Marks: P1, P2, Q1 and Q2
- Dots with dashed lines to the axes, an arrow for the shift
- No numbers, no title
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No Higher Level paper has set this micro on its own yet. Standard Level Paper 1 asked it in November 2025, as part (a) for 10 marks; the same question can appear at Higher Level.
Explain two non-price determinants that could increase the market supply of a good.
Model answer plan
See the answer broken into clear points, with guidance on how each point earns marks.
Animated graph
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What the diagram must show
- Both axes labelled: Price (P) and Quantity (Q).
- The curve before the change: S1.
- The new curve S2, to the right of S1, with an arrow.
- Q1 → Q2 at the same price P1.
- In your writing, say S1 shifts right to S2 and why.
How the 10 marks are given
| Marks | What your answer needs |
|---|---|
| 9–10 | Both parts fully explained, terms used correctly all the way through, the diagram included and fully explained |
| 7–8 | Both parts explained, terms mostly right, the diagram included and explained |
| 5–6 | Partly explained, some terms, the diagram included |
| 6 at most | Only one of the two parts answered, however good it is |