Th1.2: Movements and Shifts of S Curve Flashcards
1
Q
What is a movement along the supply curve caused by?
A
a change in the price of a good
2
Q
What is a shift of the supply curve caused by?
A
a change in any of the factors which affect supply
3
Q
Refer to PP
Look at Graph 9. What does a movement from A to B show?
A
a contraction in supply
4
Q
What does a contraction in supply mean?
A
the quantity supplied falls because of a decrease in price
5
Q
Refer to PP
Look at Graph 9. What does a movement from A to C show?
A
an extension in supply
6
Q
What does an extension in supply mean?
A
the quantity supplied rises due to an increase in price
