A shift in the supply curve is called:

Question

Quizplus · Accepted Answer

A shift in the supply curve is caused by a change in one or more of the determinants of supply, such as input prices, technology, or the number of firms in the market. This results in a new supply curve, representing a different relationship between quantity supplied and price. Therefore, it is called a 'change in supply', not a 'movement along the supply curve', which would occur due to a change in price, leading to a change in quantity supplied at the same supply curve. A 'change in the quantity supplied' refers to a movement along the supply curve, as a result of a change in price, but this is not the same as a shift in the supply curve. Therefore, the correct answer is A, a 'change in supply'.

A Shift in the Supply Curve Is Called