Difference between Movement Along Supple Curve and Shift in Supply Curve
Basis |
Movement Along Supply Curve |
Shift in Supply Curve |
---|---|---|
Meaning |
It includes a change in quantity supplied due to an increase or decrease in price while all other factors remain constant. |
It includes a change in supply as a result of a change in variable other than the commodity’s price. |
Effect on Supply Curve |
It includes movement in the same demand curve, either upward (Expansion in Supply) or downwards (Contraction in Supply). |
This includes shift in the demand graph either in rightwards (Increase in Supply) or leftwards direction (Decrease in Supply). |
Reason |
Changes in the price of the given commodity is the main reason for Movement along the Supply Curve. |
Changes in the price of substitute and complementary goods, changes in income levels, etc. results in a Shift in the Supply Curve. |
Difference between Movement Along Supple Curve and Shift in Supply Curve
Supply is defined as the quantity the seller is willing to sell at a particular price, at a particular point in time. Supply undertakes various factors, like the price of the commodity, price of the substitute, future expectations, income of the consumer, cost of the inputs, technological advancements, etc. The supply curve is a graphical presentation showing the relationship between the quantity supplied and the price of the commodity. The supply curve typically faces two situations:
- Movement along the Supply Curve
- Shift in the Supply Curve