Movements along versus shifts of supply curves : Consider the market supply of cereal

Economics Dec 12, 2020

Movements along versus shifts of supply curves :

Consider the market supply of cereal. Complete the following table by indicating whether an event will cause a movement along the supply curve for cereal or a shift of the supply curve for cereal, holding all else constant

- A change in technology that makes it more costly to produce cereal : Movement Along / Shift

- A change in expectations about the future price of cereal : Movement Along / Shift

- A decrease in the price of cereal : Movement Along / Shift

Expert Solution

An increase in cereal prices

It will result in a movement along the supply curve.

A change in technology that makes it more costly to produce

This will result in a shift in the supply curve.

A decrease in the number of producers

It will result in a shift along the supply curve.

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