Movement and shift in supply curve.ppt

Elasticity of supply Expansion of supply , contraction of supply,
increase in supply ,
Decrease in Supply

1. Movement Along Supply Curve
Developed by
Prof. Avinash Sahu
City Premier College,
Nagpur

2. introduction
Movementalongthesupplycurveorchangein
quantitysuppliedreferstoextensionand
contractionofsupplyofacommoditycausedby
changeinownpriceofthecommodity.

3. Movement along supply curve are of
two type:
1) Expansion of supply :
•Whenpriceincreases,thereisan
upwardmovement(A-A1)alongthe
supplycurve,calledextensionof
supply,otherthingremainingsame.

4. •2) Contraction of supply
whenpricedecreases,thereis
adownwardmovement(A1-
A)alongthesupplycurve,
calledcontractionofsupply.
Otherthingsremainingsame.

5. Shifts in supply are two type :
•1) Increase in supply
•Whenotherfactorschangein
thefavorabledirection,the
supplycurveshiftstotheright
showingincreaseinsupply.

6. 2) Decrease in Supply
•Whenotherfactorschange
inanunfavorablemanner,
thesupplycurveshiftsto
theleftshowingadecrease
insupply.