Explain the difference between a shift in the supply curve a
Explain the difference between a shift in the supply curve and a movement along the supply curve.
Solution
A movement in a supply curve is a change in supply as a result of a change in price.
A shift in a supply curve is a change in supply for a reason other than a change in price like reduction in average costs of production or subsidy on raw materials or subsidy on labour or improvements in technology.
