ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Curve Shifts Left
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Curve Shifts Right
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Movement Along the Curve
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None of the above
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Detailed explanation-1: -A rise or fall in the price of the commodity alone causes a movement along the supply curve (ceteris paribus).
Detailed explanation-2: -A change in quantity demanded is represented as a movement along a demand curve. The proportion that quantity demanded changes relative to a change in price is known as the elasticity of demand and is related to the slope of the demand curve.
Detailed explanation-3: -Movement along the demand curve depicts the change in both the factors i.e. the price and quantity demanded, from one point to another. Other things remain unchanged when there is a change in the quantity demanded due to the change in the price of the product or service, results in the movement of the demand curve.
Detailed explanation-4: -Movement along the Supply Curve Taking the same example used above, if the price of the egg increases to Rs. 8, we will see an increase in the quantity of the product supplied. Because we see an increase in supply, we call it an Extension of the supply. This Movement in Supply Curve is an upward movement.