FIGURE 7 CHANGES IN SUPPLY VERSUS CHANGES IN QUANTITY SUPPLIED
imageA shift in the supply curve from S0 to S1 represents an increase in supply, because businesses are willing to offer more of the product to consumers at all prices. A shift from S0 to S2 reflects a decrease in supply. A movement along S0 from point a to point c represents an increase in quantity supplied; this type of movement can only be caused by a change in the price of the product.