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Hey everyone and welcome back to the channel. In this video well be looking at what happens to the equilibrium price and quantity when theres a shift in the supply curve. With that said lets get into it. [Music] So to start we need to draw our general supply and demand graph, starting with our axes, our supply and demand curves, and then labeling everything. So price on the y-axis, quantity on the x-axis, our P star and Q star denoting the intersection of my supply and demand curves and then of course I have the supply and demand curves labeled as well. Now lets take a look at a supply shock. One example is: technological innovation causes a decrease in the production costs of good. Now we know that production costs or the cost of factors of production is a supply curve shift factor. In this case its making the cost of production cheaper which means Im going to supply more goods because I can afford to make more goods. This is going to cause a rightwa