Which statement describes a shift of the supply curve rather than a movement along it?

Enhance your understanding of Year 10 Economics in Australia with interactive quizzes. Study with multiple-choice questions, hints, and detailed explanations to prepare for your exam!

Multiple Choice

Which statement describes a shift of the supply curve rather than a movement along it?

Explanation:
Supply curves show how much producers are willing to sell at each price. A movement along the curve happens when the price changes, so the quantity supplied changes but the curve itself stays in the same position. A shift of the curve happens when something other than price changes, altering the overall willingness or ability to produce across all prices. Non-price factors like input costs can make production less profitable at every price, shifting the supply curve to the left; improvements in technology or changes in input prices can shift it to the right. So the statement describing a shift is the one that points to a non-price factor affecting supply across all prices.

Supply curves show how much producers are willing to sell at each price. A movement along the curve happens when the price changes, so the quantity supplied changes but the curve itself stays in the same position. A shift of the curve happens when something other than price changes, altering the overall willingness or ability to produce across all prices. Non-price factors like input costs can make production less profitable at every price, shifting the supply curve to the left; improvements in technology or changes in input prices can shift it to the right. So the statement describing a shift is the one that points to a non-price factor affecting supply across all prices.

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