Distinguish between movement along the supply curve and shift of the supply curve.

Exercises · Q8

Q. Distinguish between movement along the supply curve and shift of the supply curve.

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Basis	Movement along the Supply Curve	Shift of the Supply Curve
Cause	A change in the commodity's OWN price, other factors constant	A change in any OTHER determinant (cost of production, technology, tax/subsidy, related-goods' prices, expectations, number of sellers)
What happens	Quantity supplied changes at a point ALONG the same, unchanged curve	The ENTIRE curve relocates to a new position
Terms used	Extension (quantity supplied rises as price rises) and Contraction (quantity supplied falls as price falls)	Increase in supply (curve shifts right — more supplied at every price) and Decrease in supply (curve shifts left — less supplied at every price)

Q.Distinguish between movement along the supply curve and shift of the supply curve.