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Movements along the supply curve
Movements along the supply curve are brought about by changes in the price of the commodity.
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.
Practical Importance of the knowledge of Price Elasticity of demand The practical importance of the measures of elasticity of demand is to be appreciated in various ways:
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