Topic Content:
- Change in Quantity Supplied
- Shift or Change in Supply
- Increase in Supply
- Decrease in Supply
Change in Quantity Supplied:
A change in quantity supplied means a movement, from one particular point on the supply curve to another point, on the same supply curve.
Such a change in quantity is a reaction to a change in price alone e.g. the movement from P to P1. A change in quantity supplied is a movement along the same supply curve caused by a change in the price of the commodity.
In simple words, movement along a supply curve represents the variation in quantity supplied of the commodity with a change in its price and other factors remaining unchanged.
The movement in the supply curve can be of two types – extension and contraction. Extension in a supply curve is caused when there is an increase in the price or quantity supplied of the commodity while contraction is due to a decrease in the price or quantity supplied of the commodity.
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