Question

Consider the supply of avocados. Explain why a change in the price of fertilizer causes a shift in the supply curve for avocados rather than a movement along the supply curve for avocados.

Answer 1

Only a change in the price of a good leads to a movement along the supply curve of the good. Other factors lead to a shift of the demand curve.

So a change in the price of fertilizers, would lead to a shift of the supply curve. If the price of fertilizers reduce, supply of avocados would increase and the supply curve would shift outward. If the price of fertilizers increases, the supply curve would shift inward

If the price of avocados increased, there would be a movement up along the supply curve of avocados. If the price of avocados decreased, there would be a movement down along the supply curve of avocados.

Step-by-step explanation: