Question

Distinguish between movement along supply curve and shift in supply with the help of a schedule.

Answer 1

Answer:

In other words, a movement occurs when a change in quantity supplied is caused only by a change in price, and vice versa. Meanwhile, a shift in a demand or supply curve occurs when a good's quantity demanded or supplied changes even though price remains the same

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Answer 2

In Microeconomics,movements along the supply curve occurs due to the changes in price of the concerned goods and services.

Absolute shifts in supply curve can occur to the changes or fluctuations in various non price factors or attributes in the market such as prices of raw materials or factors/inputs of production,relevant government policies,producer or seller expectations,natural calamity,technological improvements in production and so forth.

Explanation:

In Microeconomics,supply curve basically shows the relationship between the price of any good or service and its quantity supplied in the market by the sellers or producers.It ideally reflects the law of supply,which states direct or positive relationship the price of any good or service and its quantity supplied,meaning that as the price of the good or service increases,its quantity supplied by the sellers or producers will also consequently increase due to prospective of higher sales revenue.Therefore,any change in commodity or service price will lead to movements along the supply curve reflecting increase or decrease in the quantity supplied by sellers or producers in the market.

On the other hand,if any factor or attribute other than the market price of goods and services changes or fluctuates in the market,the supply curve would shift upward or downward depending on the exact impact of the non price factors in the market.Some of the factors or attributes causing shift of the entire supply level in the market include technological improvements in the production process,changes in the prices of raw materials or factors/inputs of production,changes in producer/seller expectations regarding market conditions,sudden or unexpected natural calamities,changes in relevant government policies and so forth.Again,note that these are non-price factors or attributes that affect the market supply of any good or service causing changes in the entire market supply and not quantity supplied.