Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 4 - Part II - The Market Forces of Supply and Demand - Questions for Review: 6


Change in producers' technology leads to a shift of the supply curve. Change in price leads to a movement within the supply curve.

Work Step by Step

The supply curve shifts only when there is a change in a relevant variable that is not named in either axis of the curve i.e a non-price determinant. In this scenario, it is the state of technology. The price is on the vertical axis of the curve, so a change in price is represented by a movement along the supply curve.
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