Multiple Choice
Topic: Movement Along a Supply Curve. If the market price of a good falls (with all other determinants of supply unchanged), what happens to the quantity supplied according to the law of supply?
3. The Market Forces of Supply and Demand
Movement Along a Supply Curve
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On the diagram to the right, movement along the supply curve from points a to b to c illustrates which of the following?
A
A change in supply due to government regulation
B
A change in supply resulting from a change in input prices
C
A change in supply caused by a shift in technology
D
A change in the quantity supplied due to a change in the price of the good
Verified step by step guidance1
Understand the difference between a movement along the supply curve and a shift of the supply curve. A movement along the supply curve occurs when the price of the good changes, affecting the quantity supplied.
Recall that a change in supply means the entire supply curve shifts either to the right (increase) or to the left (decrease), which happens due to factors like government regulation, input prices, or technology changes.
Identify that points a, b, and c lie on the same supply curve, so moving from a to b to c represents a change in quantity supplied, not a change in supply.
Recognize that a change in quantity supplied is caused solely by a change in the price of the good, holding all other factors constant.
Conclude that the movement along the supply curve from points a to b to c illustrates a change in the quantity supplied due to a change in the price of the good.
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