Government policies such as regulations or taxes can impact the supply curve.
Regulations: Often lead to increased production costs, shifting the supply curve to the left. For example, more stringent safety regulations can make production more expensive, reducing the quantity supplied at each price.
Taxes: Specific taxes on production can increase costs, causing the supply curve to shift left, as suppliers are discouraged from producing as much at the same price level.
Subsidies: On the other hand, reduce production costs, shifting the supply curve to the right.
