Movement along the supply curve is known as_______.

Question

YESPYQ · Accepted Answer

Correct answer: d) Expansion and contraction of supply. The movement along the supply curve takes place when all the factors affecting supply remain constant and only the price changes. Hence, when the price increases supply contracts, and when the price decreases supply expands. A rise or fall in the price of the commodity alone causes a movement along the supply curve. A movement along a supply curve represents a change in quantity supplied. It is caused by a change in the price of goods. There is a direct relationship between price and quantity supplied. Hence, The correct answer is "Expansion and contraction of supply".

Movement along the supply curve is known as_______.

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