ECON1101 doubt (1 Viewer)

[SoFTuaRiaL]

ok, this is a small doubt i got. in the tests available on the textbk website, they got very similar choices. eg:
A. increase in supply
B. increase in quantity supplied

what is the difference between them?

* (increase/decrease) in (demand/supply) &
* (increase/decrease) in quantity (demanded/supplied)

 

[maniacguy]

See your textbook.
Increase/decrease in quantity supplied/demanded = movement ALONG the supply/demand curve from one point to another

Increase/decrease in supply/demand = movement OF the entire supply/demand curve to a new locatoin

 

[SoFTuaRiaL]

oh ok, i get it now .... thanx mate

 

[Nick]

isnt a movement along the supply curve called either a contraction or expansion?

tahts wat they say in hsc ecos..

 

[googy_1985]

Hey - I do Eco at Uni of Canberra.

Contraction and expansion are to do with the 'business cycles'. You have a peak, contraction , trough, expansion, peak - cycle then repeats..

 

[Nick]

yeah but they also describe movements along the supply and demand curves wen the quantities move due to price increases/decreases...

 

[Minai]

Originally posted by Nick
yeah but they also describe movements along the supply and demand curves wen the quantities move due to price increases/decreases...

thats still is correct, but in uni, its safe to forget most of the economics u learnt in the HSC