Difference between Shift in Supply curve and Movement in Supply curve
GP
Thursday, December 17, 2020
Difference between Shift in Supply curve and Movement in Supply curve
Movement Along a supply curve
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The shift in the supply curve
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Movement along a supply curve occurs due to
price.
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The shift in the supply curve occurs due to factors other
than price, such as income, technology, climate, future price expectations,
etc.
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Other things remain constant in movement along
supply curve.
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Other things change in a shift in the supply curve.
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There are expansion and contraction of the supply curve.
- Expansion: When quantity supply increases.
- Contraction: When quantity supply decreases.
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There are rightward shifts and leftward shifts in the supply curve.
- Rightward Shift: When quantity supplied
increases.
- Leftward shift: When quantity supplied
decreases.
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Movement Along a supply curve is also termed as ‘change
in quantity supplied.’
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The shift in the supply curve is also termed as ‘change in supply.’
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Movement Along a supply curve does not affect the equilibrium.
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The shift in the supply curve changes the equilibrium.
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Movement Along a supply curve occurs in the same supply curve.
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A shift in the supply curve occurs when the supply curve changes.
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