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Movement and shift in supply curve.ppt

25. Mar 2023
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Movement and shift in supply curve.ppt

  1. Movement Along Supply Curve Developed by Prof. Avinash Sahu City Premier College, Nagpur
  2. introduction Movement along the supply curve or change in quantity supplied refers to extension and contraction of supply of a commodity caused by change in own price of the commodity.
  3. Movement along supply curve are of two type: 1) Expansionof supply : • When price increases, there is an upward movement (A- A1) along the supply curve, called extension of supply, other thing remaining same.
  4. • 2) Contractionof supply when price decreases, there is a downward movement (A1- A) along the supply curve, called contraction of supply. Other things remaining same.
  5. Shifts in supply are two type : • 1) Increase in supply • When other factors change in the favorable direction, the supply curve shifts to the right showing increase in supply.
  6. 2) Decreasein Supply • When other factors change in an unfavorable manner, the supply curve shifts to the left showing a decrease in supply.
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