The consideration of such costs is pivotal our study of supply. If costs rise, the producer would be assumed to decrease supply in anticipation of lower profits. There would therefore be an indirect relationship between the price of inputs and the supply of good X. The supply curve would shift to the left if the cost of inputs rose, and vice versa (see Figure5.2). The degree of shift depends upon the size of a factor ‘s price change, the relative importance of that factor in production, and the degree that factor could be substituted for others.