Explain the difference between a shift in the supply curve and a
movement along the supply curve.
ANSWER
A movement along the supply curve occurs when
the price of the good changes. A shift of the supply curve is caused by a
change in something other than the good’s price that results in a change in the
quantity supplied at the current price. Some examples are a change in the price
of an input, a change in technology that reduces the cost of production, and an
increase in the number of firms supplying the product.
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