Question

classify each scenario according to whether the change in quantity is caused by a shift of the supply curve or movement along it. shift of the supply curve movement along the supply curve answer bank a national consumer products company produces less of its premium quality soap as a result of lower soap prices. after discovering that flash - steaming tuna before using mechanical processes to extract meat removes more tuna flesh, more cans of tuna arrive on the shelves of all major grocers. rising wages for construction workers in toronto result in construction workers moving to toronto. americans sell their gold and silver jewelry as a result of rising prices. amplitude decides to join the smartphone market.

Explanation:

• A change in the price of the good itself causes a movement along the supply - curve. When the price of soap decreases, the quantity supplied of soap by the company decreases, which is a movement along the supply - curve. When the price of gold and silver jewelry rises, the quantity supplied (Americans selling their jewelry) increases, which is also a movement along the supply - curve.
• A non - price factor that affects production costs or technology causes a shift in the supply - curve. Discovering a new more efficient production method for tuna (flash - steaming) is a non - price factor that increases the supply of tuna, causing a shift in the supply - curve. A new firm (Amplitude) entering the smartphone market is a non - price factor that increases the overall supply in the smartphone market, causing a shift in the supply - curve. The example about construction workers moving to Toronto is not related to the supply of a good's quantity and is an incorrect option for this classification.

Answer:

• Shift of the supply curve: After discovering that flash - steaming tuna before using mechanical processes to extract meat removes more tuna flesh, more cans of tuna arrive on the shelves of all major grocers; Amplitude decides to join the smartphone market.
• Movement along the supply curve: A national consumer products company produces less of its premium quality soap as a result of lower soap prices; Americans sell their gold and silver jewelry as a result of rising prices.