If the cost of a factor of production rises, the opportunity cost of production rises, changing the relationship between the desired quantity supplied and market price. Graphically, this means the supply curve shifts back and to the left from S1 to S2 as shown to the right.

   Note that a shift of the supply curve in this direction is a decrease in supply or a shift back in supply.

   Consider your own "supply" behavior, say working part time while in school. If warm weather outdoor activities are your favorite leisure pursuits, then you might supply less during warmer months, just as if the cost of a factor of production (your time) had risen.

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