31/08/2021
MICROECONOMICS: TOPIC -82
What cause movements along the supply curve?
Learning Contents:
· Extension of supply
· Contraction of supply
Introduction
As the Law of supply states, other things remaining constant, when the price of a commodity rises, sellers are willing to sell more of it; if price of a commodity falls, they sell less of it. Therefore, price may either go up or down and this causes the seller to sell either more or less of a commodity respectively.
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What cause movements along the supply curve?