Movement along the supply curve or change in
quantity supplied refers to extension and
contraction of supply of a commodity caused by
change in own price of the commodity.
Movement along supply curve are of
1) Expansionof supply :
• When price increases, there is an
upward movement (A- A1) along the
supply curve, called extension of
supply, other thing remaining same.
• 2) Contractionof supply
when price decreases, there is
a downward movement (A1-
A) along the supply curve,
called contraction of supply.
Other things remaining same.
Shifts in supply are two type :
• 1) Increase in supply
• When other factors change in
the favorable direction, the
supply curve shifts to the right
showing increase in supply.
2) Decreasein Supply
• When other factors change
in an unfavorable manner,
the supply curve shifts to
the left showing a decrease