A change in the price of a good ________ its supply curve and ________ a movement along its supply curve.
A) shifts; causes
B) shifts; does not cause
C) does not shift; causes
D) does not shift; does not cause
E) None of the above because the change in the price might cause either a shift in the supply curve or a movement along the supply curve depending on the size of the change.

Question

Quizplus · Accepted Answer

A change in the price of a good does not shift its supply curve; instead, it causes a movement along the existing supply curve. Shifts in the supply curve are caused by factors other than the price of the good itself, such as changes in production costs or technology.

A Change in the Price of a Good ________ Its