ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A change in price either causes supply curves to expand or contract. If the prices increase, other factors kept constant, there is an increase in the quantity supplied which is referred to as an expansion in supply. Graphically, this is represented as an upward movement along the same supply curve.

Detailed explanation-2: -Understanding Change in Supply An increase in the change in supply shifts the supply curve to the right, while a decrease in the change in supply shifts the supply curve left. Essentially, there is an increase or decrease in the quantity supplied that is paired with a higher or lower supply price.

Detailed explanation-3: -The supply curve demonstrates the relationship between a good’s price and the quantity producers are willing and able to supply. The upward sloping line demonstrates this direct relationship: as the price rises, the quantity supplied increases; as price decreases, quantity supplied decreases.

Detailed explanation-4: -A movement along a supply curve is called a change in quantity supplied. If there is an improvement in the technology of producing a product, the supply curve for that product will shift to the left.