Question

Increase or decrease in supply means ______.

Options

• shift of supply curve

• movement along the supply curve

• elastic supply

• None of these

Answer 1

Increase or decrease in supply means shift of supply curve.

Explanation:

• An increase or decrease in supply refers to a change in the quantity supplied at every price level, resulting in the entire supply curve shifting to the right (increase in supply) or the left (decrease in supply).
• This differs from a movement along the supply curve, which occurs due to a change in the price of the good itself, leading to a change in the quantity supplied without shifting the curve.