Question

Economists make distinction between changes in quantity supplied and changes in supply:

A. Because the supply curve shifts whenever there is a change in quantity supplied.
B. To distinguish a movement along a supply curve from a shift in the supply curve.
C. Because the demand curve shifts whenever there is a change in quantity supplied.
D. To distinguish a supply shift from a demand shift.

Answer 1

Economists differentiate changes in quantity supplied and changes in supply to distinguish movements along the supply curve from shifts of the supply curve itself due to various factors.

Step-by-step explanation:

Economists distinguish between changes in quantity supplied and changes in supply in order to distinguish a movement along a supply curve from a shift in the supply curve. A movement along the supply curve reflects a change in the quantity supplied due to a change in price, all else being equal. However, if other factors relevant to supply do change, such as production costs, technology, or number of sellers, this results in a shift of the entire supply curve, meaning there is a change in the quantity supplied at every price.