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Movement along the supply curve is known as ______ . Options: 1) Contraction of supply 2) Expansion of supply 3) Increase in supply 4) Expansion and contraction of supply

Posted by bhavishya kumar at 26 Sep 17 14:00:16pm Views: 804

Correct Answer: Expansion and contraction of supply

In other words, a movement occurs when a change in the quantity demanded is caused only by a change in price, and vice versa. ... Therefore, a movement along the supply curve will occur when the price of the good changes and the quantity supplied changes in accordance to the original supply relationship.

 


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