Input prices encompass the costs of all factors involved in the production process, including raw materials, labor, machinery, and technology. These prices directly influence a producer's operational expenses.

When the cost of inputs rises, production becomes more expensive for producers. In response, producers may reduce their output to maintain profitability, resulting in a decrease in supply.

On the other hand, lower input prices lead to reduced production costs and increased profits for businesses. As a result, producers increase their output, leading to an increase in supply.

Consider a smartphone manufacturer. If labor costs rise while all other factors remain constant, the cost of production of smartphones will also rise. The manufacturer may produce fewer smartphones, causing a leftward shift in the supply curve.

In contrast, if labor costs decrease, the production cost of smartphones will fall. This could prompt the manufacturer to increase production, leading to a rightward shift in the supply curve.

To conclude, input prices help predict how changes in production costs can influence the supply curve.