Some producers are chatting.Which one of the following quotations refers to a movement along the supply curve?
A)"Wage increases have forced us to raise our prices."
B)"Our new,sophisticated equipment will enable us to undercut our competitors."
C)"Raw material prices have sky-rocketed;we will have to pass the cost on to our customers."
D)"We anticipate a big increase in demand.Our product price should rise,so we are planning for an increase in output."
E)"New competitors in the industry are causing prices to fall."

Question

Quizplus · Accepted Answer

Movement along the supply curve refers to a change in the quantity supplied due to a change in the price of the product. In this quotation, the producers are anticipating a big increase in demand, which means the price of the product should rise, leading to an increase in output. This is a movement along the supply curve.

Some Producers Are Chatting