Change in Quantity Supplied Vs. Change in Supply
There is a difference between a change in supply and a change in quantity supplied. The differences are explained below. A Change in Quantity Supplied Change in quantity supplied can be explained as the movement long a stationary supply curve while holding other factors constant. This movement is drawn from the law of supply, which states that there is a positive relationship between price and supply while holding other factors constant. Thus, if the price moves up along the y-axis, the quantity supplied will move to the right along the x-axis. A change in quantity supplied is caused by price movements. This relationship is shown in the graph below. An increase in price from P1 to P2 will cause an upward movement on the supply curve, as shown by the arrow. This will cause the quantity supplied to increase from Q1 to Q2. Change in Supply Change in supply is Continue reading