The position of a supply curve will change following a change in one or more of the underlying determinants of supply. For example, a change in costs, such as a change in labour or raw material costs, will shift the position of the supply curve.
Rising costs
If costs rise, less can be produced at any given price, and the supply curve will shift to the left.
Falling costs
If costs fall, more can be produced, and the supply curve will shift to the right.
