Change in Quantity Supplied


Change in quantity supplied is represented by movement along a given supply curve. Price is the only factor that can cause a change in quantity supplied. The five determinants of supply do not effect the change in quantity supplied, only the change in supply.

Key Terms

  • Quantity supplied
  • Supply price
  • Supply curve
  • Five supply determinants

Supply Curve

external image moz-screenshot.pngexternal image Figure4-3.jpg
Shifting from A to B demonstrates a change in quantity supplied,
while shifting from S1 to S2 shows a change in supply.

Supply v Quantity Supplied

Quantity supplied is one point on a supply curve. It represents a specific quantity of goods that sellers are willing to sell at a specific price.
Supply is represented by all of the points on the supply curve. It shows the range of quantities that sellers are willing to sell at a range of prices.

Review

1. Choose the correct statement:
a. Quantity supplied is effected by the five determinants of supply.
b. The change in supply and the change in quantity supplied are the same thing.
c. Shifting from one point to another on the same curve shows a change in quantity supplied.
d. A change in price does not effect change in quantity supplied.
2. Graph the change in quantity supplied using the following information: sellers are willing to sell 100 units of goods at $10 and 900 units at $12.
3.True or False: The only factor that can cause a change in quantity supplied is price.
Answers:
1. C
2.
external image supplygraph3.gif
3. True

References

1. http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=change+in+quantity+supplied
2. http://www.investopedia.com/university/economics/economics3.asp