Difference between a movement along a supply curve
1.Explain the difference between a movement along a supply curve and a shift in the supply curve.
2.Suppose you decide to start your own business. Give a brief overview of the purpose and location of your new firm.
Sample Answer
Differences between Movement and Shift in Supply Curve:
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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: