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Illustration on movement along supply curve ?
Anonymous
Nov 27, 2023
Illustration on movement along supply curve ?
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ChatGPT
Nov 27, 2023
Sure! Here's an illustration of movement along a supply curve:
Let's say we have a supply curve for apples, where the quantity supplied is on the x-axis and the price is on the y-axis. The supply curve slopes upward from left to right, indicating that as the price of apples increases, the quantity supplied by producers also increases.
Now, suppose the initial price of apples is $2 per pound, and at this price, producers are willing to supply 100 pounds of apples. This point is represented by a dot on the supply curve.
If the price of apples increases to $3 per pound, producers may be willing to supply 150 pounds of apples. This new point is represented by another dot on the supply curve, which is higher up and to the right compared to the initial point.
On the other hand, if the price of apples decreases to $1 per pound, producers may only be willing to supply 50 pounds of apples. This new point is represented by another dot on the supply curve, which is lower down and to the left compared to the initial point.
These movements along the supply curve occur because producers respond to changes in price. As the price increases, it becomes more profitable for producers to supply more apples, leading to an upward movement along the supply curve. Conversely, as the price decreases, it becomes less profitable for producers to supply apples, leading to a downward movement along the supply curve.
Overall, movement along the supply curve shows the relationship between price and quantity supplied, with higher prices leading to greater quantities supplied and lower prices leading to smaller quantities supplied.
Let's say we have a supply curve for apples, where the quantity supplied is on the x-axis and the price is on the y-axis. The supply curve slopes upward from left to right, indicating that as the price of apples increases, the quantity supplied by producers also increases.
Now, suppose the initial price of apples is $2 per pound, and at this price, producers are willing to supply 100 pounds of apples. This point is represented by a dot on the supply curve.
If the price of apples increases to $3 per pound, producers may be willing to supply 150 pounds of apples. This new point is represented by another dot on the supply curve, which is higher up and to the right compared to the initial point.
On the other hand, if the price of apples decreases to $1 per pound, producers may only be willing to supply 50 pounds of apples. This new point is represented by another dot on the supply curve, which is lower down and to the left compared to the initial point.
These movements along the supply curve occur because producers respond to changes in price. As the price increases, it becomes more profitable for producers to supply more apples, leading to an upward movement along the supply curve. Conversely, as the price decreases, it becomes less profitable for producers to supply apples, leading to a downward movement along the supply curve.
Overall, movement along the supply curve shows the relationship between price and quantity supplied, with higher prices leading to greater quantities supplied and lower prices leading to smaller quantities supplied.
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