Question

What is meant by change in quantity supplied?

What is meant by change in the quantity supplied? Show it diagrammatically.

Answer 1

Change in quantity supplied refers to the change in supply due to a change in the product’s own price when other factors remaining constant. Graphically, it is called movement along a supply curve.

Answer 2

When quantity supplied changes as a result of a change in the own price of the commodity, other factors remaining the same, it is known as a change in quantity supplied.

Examine the pricing in the fig. OP₁; the quantity delivered is OQ₁. Now, the quantity delivered increases to OQ₂ if the price climbs to OP₂. On the provided supply curve SS, this upward movement from A₁ to A₂ (shown by the arrow's direction) denotes “expansion of supply” or “increase in the quantity supplied”. However, the amount of the commodity delivered drops to OQ₃ if the commodity’s price drops below OP₃. The “contraction of supply” or “fall in the quantity supplied” is the downward movement from A₁ to A₃ (shown by the arrow’s direction) on the specified supply curve.