Under perfect competition, a rightward shift of the market supply curve could be caused by9/22/2023 ![]() This movement is known as a contraction of the supply curve. 10, the amount of quantity supplied falls from 20,000 liters to 10,000 liters, and there is another movement in the supply curve from point B to point A. This movement is known as an extension of the supply curve. 30, the amount of quantity supplied rises from 20,000 liters to 30,000 liters, and there is a movement in the supply curve from point B to point C. 20 is the original price of milk per liter and 20,000 liters is the original quantity of supply. Extension in a supply curve is caused when there is an increase in the price or quantity supplied of the commodity while contraction is caused due to a decrease in the price or quantity supplied of the commodity. The movement in supply curve can be of two types – extension and contraction. ![]() In simple words, movement along a supply curve represents the variation in quantity supplied of the commodity with a change in its price and other factors remaining unchanged.
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