Question

Discuss the difference between change in supply and change in the quantity supplied. List at least one thing that can cause each type of change.

Answer 1

Change in supply refers to the situation in which the suppliers are willing to supply a different amount at all price levels compared to before or in other words at any given price level the supplier is willing to supply a different amount compared to before. Graphically, change in supply corresponds to a shift in the supply curve. Factors that caus e a change in supply for example are change in input prices.

Change in quantity supplied is different. It refers to the situation where there is a chenge in the price of the good and then the supplier supplies the amount at this changed price level. Graphically, the change in quantity supplied corresponds to a movement along the supply curve. A change in the price of the good causes a change in its quantity supplied.