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What happens when supply curve shifts left. Answer 1 of 13. Shifts In Supply Note that in this case there is a shift in the supply curve. . The supply curve is a graphical representation of the relationship between the price of a good or service and the quantity supplied for a. A is the point showing the initial equilibrium point. A change in supply can be noted as either an increase or a decrease. When the supply decreases in the market due to any reason the supply curve shifts to the left from S 1 to S 2. So the entire quantity demanded viz q 1 is excess demand. When supply increases accompanied by no change in demand the supply curve shift towards the right. The upward shift represents the fact that supply often decreases when the costs of production increase so producers need to get a higher price than before in order to supply a given. This increase will result in the downward shift of the supply curv...
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