Difference between a movement along a supply curve

Full Answer Section

   

1. • • Changes in input costs (labor, materials)
     • Technological advancements affecting production efficiency
     • Government policies or subsidies
     • Expectations about future prices
     • Number of firms in the market (entry or exit)

2. Visual representation:
   • Movement along the curve:The existing curve remains the same, and only the quantity supplied at different price points changes.
   • Shift of the curve:The entire curve shifts to the right (increased supply) or left (decreased supply) without changing its shape.
3. Predictability:
   • Movement along the curve:This is relatively predictable based on known economic principles like the law of supply and demand.
   • Shift of the curve:This can be more challenging to predict as it depends on various external factors that can change unexpectedly.

My New Business: Eco-Friendly Bakery Purpose: My new firm will operate as an eco-friendly bakery focusing on sustainable practices and locally sourced ingredients. We will offer organic breads, pastries, and desserts with a commitment to minimizing our environmental impact. Location: The bakery will be located in a bustling suburban neighborhood with growing awareness of healthy and sustainable living. Ideally, the location will have easy access to public transportation and offer opportunities for outdoor seating or a small patio. Key differentiators:

• Sustainability:We will prioritize organic ingredients, compostable packaging, energy-efficient appliances, and waste reduction practices.
• Community focus:We will source ingredients from local farms and businesses, supporting the local economy and fostering relationships with our suppliers.
• Unique product offerings:We will develop innovative and delicious recipes using healthy and wholesome ingredients while catering to various dietary needs.

Next steps:

• Develop a detailed business plan including financial projections and marketing strategies.
• Secure funding and finalize the location.
• Build a team of passionate and skilled bakers and staff.
• Partner with local farmers and suppliers.
• Develop a strong brand identity and marketing campaign.

By focusing on sustainability, community involvement, and high-quality products, I believe my eco-friendly bakery can offer a unique and valuable experience to customers, contributing to a healthier and more sustainable future.  

Sample Answer

   

Differences between Movement and Shift in Supply Curve:

1. Cause:

   • Movement along the curve: This occurs when the price of the good itself changes. As the price increases, suppliers are typically willing to offer more of the good (moving upwards). Conversely, with a decrease in price, suppliers offer less (moving downwards).
   • Shift of the curve: This happens when factors other than the price itself change. These factors can be: