Differentiate between movement along and shift of the supply curve.

Movement along the supply curve refers to a change in quantity supplied due to price changes, while a shift of the supply curve indicates a change in supply due to non-price factors.

Movement along the supply curve, also known as a change in quantity supplied, is caused by a change in the price of the good or service itself. For instance, if the price of a product increases, suppliers are likely to produce more of it, leading to a movement up along the supply curve. Conversely, if the price decreases, suppliers may produce less, resulting in a movement down the supply curve. This movement is a response to price changes and does not involve any alteration in the supply curve's position.

On the other hand, a shift in the supply curve, or a change in supply, is caused by factors other than the price of the good or service. These factors can include changes in production costs, technological advancements, changes in the prices of related goods, expectations of future prices, and changes in government policies such as taxes or subsidies. For example, if the cost of raw materials for a product decreases, the supply of the product increases, shifting the supply curve to the right. Conversely, if a tax is imposed on a product, the supply decreases, shifting the supply curve to the left. Unlike movement along the supply curve, a shift in the supply curve involves a change in the position of the curve on the graph.

IB Economics Tutor Summary: Movement along the supply curve occurs when the price of a product changes, causing suppliers to adjust the quantity they produce. A shift in the supply curve happens due to non-price factors, like production costs or government policies, changing the overall supply. In essence, price changes lead to movement along the curve, while other factors cause the curve to shift position.