The Primary Difference Between a Change in Supply and a Change

question 156

Multiple Choice

The primary difference between a change in supply and a change in the quantity supplied is that:

• A)a change in quantity supplied is a movement along the supply curve,while a change in supply is a shift in the supply curve.
• B)both a change in quantity supplied and a change in supply are movements along the supply curve,only in different directions.
• C)a change in supply is related to the supply curve,while a change in quantity supplied is related to shifts in the demand curve that shift the supply curve.
• D)a change in supply is a movement along the supply curve,while a change in quantity supplied is a shift in the supply curve.

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Definitions:

Cross Elasticity

Cross elasticity of demand measures the responsiveness of the demand for a good to a change in the price of another good, identifying substitute or complementary relationships.

Quantity Demanded

The total amount of goods or services that consumers are willing and able to buy at a specific price level, at a given point in time.

Normal Good

A type of good for which demand increases as the income of consumers increases, and vice versa.

Supply Schedule

A table of numbers showing the amounts of a good or service producers are willing and able to make available for sale at each of a series of possible prices during a specified period of time.