Panties 551a Factors That Cause a Change in Supply Number of Producers A successful new prod uct or service always brings out competitors who initially raise overall supply. Producer Expectations The amount of product producers are willing and able to suppiy may be influenced by whether they believe prices will go up or down. Input Costs Input costs. the collective price of the resources that go into producing a good or service, affect supply directly. Government Action Government actions, such as taxes or subsidies, can have a posi- tive or a negative effect on production costs. Labor Productivity Better-trained or more-skilled work- ers are usually more productive. Increased productiv- ity decreases costs and increases sup ply. Technology By applying scientific advances to the production process. produc- ers have learned to generate their goods and services more efficiently