Which of the following would cause a movement along the supply curve? A change in the cost of inputs A change in technology A change in the number of sellers A change in the price of the product
Question
Which of the following would cause a movement along the supply curve? A change in the cost of inputs A change in technology A change in the number of sellers A change in the price of the product
Solution
A change in the price of the product would cause a movement along the supply curve.
Here's why:
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The supply curve represents the relationship between the price of a product and the quantity of the product that sellers are willing and able to supply, holding all else constant.
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A movement along the supply curve, also known as a change in quantity supplied, occurs only when the price of the product changes.
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If the price of the product increases, sellers are willing to supply more of the product, causing a movement up along the supply curve. Conversely, if the price decreases, sellers are willing to supply less, causing a movement down along the supply curve.
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Changes in the cost of inputs, technology, or the number of sellers do not cause a movement along the supply curve. Instead, these factors cause the entire supply curve to shift to the left (decrease in supply) or right (increase in supply). These are known as changes in supply.
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