Movements along the supply curve
Syllabus: Explain that a supply curve represents the relationship between the price and the quantity supplied of a product, ceteris paribus.
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The supply curve is drawn on the assumption that only price has changed and everything else has remained the same. This is an important assumption to note. In reality many factors are changing at the same time, but if we are to analyse the factors causing a change in the market, we first need to isolate each of the factors. This assumption, known as 'ceteris paribus' or 'other things being equal' enables us to do this.