Question:
The factor that can cause a movement along the supply curve is a change in
(1) the cost of production.
(2) the price of the good itself.
(3) consumer income.
(4) technology.
(5) the number of suppliers.
Correct Answer:
(2)
Answer Explanation:
Changes in non-price determinants (like technology, costs, or number of sellers) cause the entire supply curve to shift. Only a change in the product’s own market price causes a movement along the existing supply curve (changing the quantity supplied).
Topic: Supply Theory Year: 2024
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