oboloo Glossary

Movement Along The Supply Curve

oboloo Glossary

Movement Along The Supply Curve

Movement along the supply curve is an economic concept for predicting the response of businesses when the price of a product or service changes. It’s based on the idea that as prices rise, sellers have increased incentive to provide more goods and services, while buyers have decreased incentive to buy them. This concept holds true over time and helps explain why businesses across different industries change their production and sales strategies in response to market fluctuations. To put it simply, movement along the supply curve predicts how businesses will respond when prices change – and impacts the way they operate.