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Overview

A change in the price of a good or service causes a movement along the supply curve.


A price rise will cause an increase (expansion) in the quantity supplied of a product

A price rise from P2 to P3 causes the quantity supplied to expand from Q2 to Q3.

A price fall will cause a decrease (contraction) in the quantity supplied

A fall in price from P2 to P1 will cause quantity supplied to contract from Q2 to Q1.

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Economics notes  on

Movement along the supply curve

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