Movement along the supply curve

• Normal supply curves slope upwards from left to right with a direct relationship between price and qty supplied.
• Initial price of commodity - P0

  Initial qty supplied - Q0

  
  

  When price reduces, it moves from P0 to P1 and the qty reduces from Q0 to Q1. This causes movement from point a to b (contraction)

  
  

  When price increases, it moves from P0 to P2 , the qty supplied increses from Q0 to Q2. This causes movement from point a to c ( expansion/extension)