Change in supply and Increase/decrease in quantity supplied

.

Movement and Shift in the Supply Curve

Other things being equal, Supply of a commodity has a positive relationship with the price of the commodity

(Change)Movement in supply – movement in supply can be demonstrated as the change in quantity supplies as a result of change in price. Movement is along the same supply curve.

(Increase/ Decrease)Shift in supply - changes in other relevant factors other than price cause a shift in supply, that is, a shift of the supply curve to the left or right. Such a shift results in a change in quantity supplied for a given price level. If the change causes an increase in the quantity supplied at each price, the supply curve would shift to the right and if the change causes an decrease in the quantity supplied at each price, the supply curve would shift to the left.



Here.

  • S = initial supply curve
  • D = initial demand curve
  • S1 = new supply curve
  • This new supply curve shows increase in supply at the same price.
  • It means factors other than price are responsible for an increase in supply.
  • Earlier at P1, Q D+S was supplied and now, due to change in factors, Qs1 is supplied.


**If you like it, then please leave a comment


2 comments:

  1. In this world, it is too common for people to search for someone to lose themselves in. But I am
    already lost. I will look for someone to find myself in. See the link below for more info.


    #lost
    www.mocsbar.com

    ReplyDelete
  2. Your blog is very useful, thank you so much for providing informative article. I’ll probably be back to read more. Thanks once again.

    www.triciajoy.com

    ReplyDelete