In: Economics
Does a change in producers’ technology lead to a movement along the supply curve or a shift in the supply curve? Does a change in price lead to a movement along the supply curve or a shift in the supply curve? Give Examples of that.
Change in producers technology leads to shift in supply curve, while change in price leads to movement along supply curve
Explanation--------
# SHIFT IN SUPPLY
Shift in supply curve means a graphical presentation of change in supply due to change in factors other than price. It may be ----
Increase in supply
Decrease in supply
In such case there is no change in price
Examples
-Change in govt policy --
-- taxation or subsidy
- change in input price
- change in price of other goods
-. Change in number of firms in the industry
- Natural factors( calamities)
# MOVEMENT ALONG SUPPLY CURVE
It is a graphical representation of change in quantity supplied due to change in the price of product.It may be----
Extension of supply--- upward movement of supply curve due to rise in price
Contraction of supply---- downward movement of supply curve due to fall in price
Shift in supply curve
Movement along supply curve