Practice prompt · Q:economics-and-market-foundations/distinguish-supply-change-001

Distinguish a supply movement from a shift

Separate an own price movement on one supply function from a stipulated input cost shift at a common reference price.

Updated Aug 7, 2026 Review due Nov 7, 2026

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Which statement correctly distinguishes the two comparisons in the fictional Linden packet?

Choose the best answer. a Moving from $50 to $60 on Qs = 200 + 10P raises quantity supplied; replacing that function with Qs = 10P lowers supply because quantity is 200 lower at the common $60 price. b Both comparisons are supply shifts because every offered-quantity change means supply changed. c The input-cost shift is proven by an increase in ending inventory even without a production or inventory rollforward.

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Answer: a

Choice a. The baseline price change moves from 700 to 800 along one supply function. The stipulated cost shift gives 600 at the common $60 price, 200 below baseline.