6 Movements along versus shifts of supply curves Consider th

6. Movements along versus shifts of supply curves

Consider the market supply of cereal.

Complete the following table by indicating whether an event will cause a movement along the supply curve for cereal or a shift of the supply curve for cereal, holding all else constant.

Event

Movement Along

Shift

Event	Movement Along	Shift
A change in technology that makes it more costly to produce cereal
A change in expectations about the future price of cereal
A decrease in the price of cereal

Solution

Event A change in technology that makes it more costly to produce cereal Shift in Supply Curve A Change in expectations about the future price of wheat Shift in Supply curve A decrease in price of cereal Movement along the demand curve.