The differences between Movement along a supply curve and Shift in the supply curve are as below:
S.N | Movement along a supply curve | Shift in the supply curve |
1. | It is caused by the change in the price of the commodity only. | It is caused by the change in the factors other than price. |
2. | The position of the supply curve remains the same. | The position of supply curve changes. |
3. | It is always along the same supply curve i.e. no new supply curve is drawn. | It is shown by the drawing new supply curve. |
4. | If the quantity supplied of a commodity decreases with a fall in price, it is called contraction in supply. In this case, the consumer moves downwards along the same supply curve | If the quantity supplied of a commodity falls due to unfavourable change factors other than price, it is called a decrease in supply. In this case, the supply curve shifts upward to the left. |
5. | If the more quantities of a commodity are supplied with the rise in price, it is called extension in supply. In this case, the seller moves upward along the same supply curve. | If the supply of a commodity rises due to favourable change in factors other than price, It is called a decrease in supply. In this case, the supply curve shifts upward to the left. |