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The figure shows the supply curve of sundaes.

Draw an arrow to show what happens to​ firms' plans if the price of a sundae rises but all other influences on selling plans remain the same.

If the price of a sundae rises, a _____ the supply curve occurs. If any factor that influences selling plans other than the price changes, then a _____ the supply curve occurs

1 Answer

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Final answer:

A rise in the price of sundaes causes a movement along the supply curve, reflecting a higher quantity supplied. Changes in factors other than price, like production costs or technology, cause the supply curve to shift to the right or left.

Step-by-step explanation:

If the price of a sundae rises, a movement along the supply curve occurs. This happens because as the price increases, the quantity supplied also increases according to the law of supply. For instance, if sundaes go from $1.00 each to $2.20, the quantity supplied might increase from 500 to 720 sundaes, this is a movement up the curve because it reflects a higher price and higher quantity supplied.

However, if there is a change in any other factor affecting supply, such as production costs or technology, then a shift of the supply curve occurs. For example, if the cost to produce sundaes increases due to a higher price of ingredients, the supply curve would shift to the left; conversely, if there is an improvement in technology that makes sundae production more efficient, the supply curve would shift to the right, indicating an increase in supply at every price level.

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