Multiple choice

Increase or decrease in supply means

  1. shift in supply curve

  2. movement along the same supply curve

  3. both (1) and (2)

  4. neither (1) nor (2)

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Increase or decrease in supply refers to a shift of the entire supply curve, caused by factors other than price. Movement along the same curve (option B) is called extension or contraction of supply, not increase/decrease. These are distinct concepts in supply analysis - shifts vs movements along curves.

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