Movements along supply curve, Managerial Economics

Movements along the supply curve

Movements along the supply curve are brought about by changes in the price of the commodity.

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When price increases from P1 to P2, quantity supplied increases from Q1 to Q2 and movement along the supply curve is from A to B. Conversely when price falls from P2 to P1, quantity supplied falls from q2 to q1 and movement along the supply curve is from B to A.

Posted Date: 11/27/2012 6:04:14 AM | Location : United States







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