Movement Along the Supply Curve
Microeconomics
A diagram showing movements along a supply curve caused by changes in the price of the good itself.
Curves and Elements
supply
Supply Curve (S): Shows the positive relationship between price and quantity supplied.
point a
Point A: The original position on the supply curve at price PA and quantity QA.
extension
Extension in Supply (A to C): A movement up the supply curve caused by a rise in price from PA to PC.
contraction
Contraction in Supply (A to B): A movement down the supply curve caused by a fall in price from PA to PB.
price change
Price Change: A change in the good’s own price causes movement along the supply curve rather than a shift of the curve.
A movement along the supply curve occurs when the good’s own price changes.
A rise in price from PA to PC causes an extension in supply, moving from point A to point C.
A fall in price from PA to PB causes a contraction in supply, moving from point A to point B.
Only price changes cause movement along the supply curve; non-price factors shift the whole supply curve.
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