Save
MICROECONOMICS
SUPPLY
Movement along the supply curve
Save
Share
Learn
Content
Leaderboard
Learn
Created by
Precious Jasmin
Visit profile
Subdecks (3)
Abnormal supply curve
MICROECONOMICS > SUPPLY > Movement along the supply curve
6 cards
Shift to the left
MICROECONOMICS > SUPPLY > Movement along the supply curve
2 cards
Shift to the right
MICROECONOMICS > SUPPLY > Movement along the supply curve
2 cards
Cards (12)
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)
See all 12 cards