Prices of Inputs:

These are the prices firms pay to obtain factors of production or inputs. Firms pay wages and salaries for hiring labour, rent for the use of land and interest for borrowing capital. Increase in input prices in turn increases cost of production thereby causing supply to decrease. A decline in input prices lowers costs of production and increases supply.

Technology:

The kind of technology a firm uses to produce its products determines the type and quantity of inputs necessary to produce to produce a given quantity of a product. When a firm uses the best technology available, it can produce a unit of a good at the lowest possible cost (economic efficiency). An advancement or improvement in technology is the development of new means of producing a good using a smaller quantity of inputs than was previously possible (technical efficiency). Technological innovation also results in the development of new products that are less costly to produce than the products they replace. Thus, technological change lowers production costs, which in turn leads to increase in profits and, therefore, increases supply.