Figure 1: Movement along the supply curve
Caused by a change in the good's own price. Click a price level on the curve.
Price
—
Quantity supplied
—
Click a point on the blue supply curve to trace the movement.
Figure 2: Shift of the supply curve
Why is it shifting?No non-price determinant has changed — supply stays at S.
Non-price determinants of supply
- Costs of production
- Productivity
- Technology
- Taxes and subsidies
- Expectations of future prices
- Number of firms in the market