What is the distinction between a "change in supply" and a "change in quantity supplied"? Illustrate using supply curve diagrams.

To start, let's define the terms "change in supply" and "change in quantity supplied". A "change in supply" refers to a shift in the entire supply curve either to the left or right due to factors other than price, such as production costs, technology, or expectations of future prices. This shift represents a change in the quantity supplied at all possible prices. A "change in quantity supplied" refers to a movement along the supply curve due to changes in the price of the good. This movement occurs only when the price of the product changes, and does not involve a shift of the entire supply curve.

In order to illustrate the differences between a change in supply and a change in quantity supplied, we need to draw an initial supply curve diagram. A supply curve is generally upward-sloping, indicating that suppliers are willing to produce and sell more of the good at higher prices. First, set up a coordinate system: - Label the horizontal axis as "Quantity" (Q) and the vertical axis as "Price" (P). Now, draw the initial supply curve: - Draw an upward-sloping line from the origin, and label it as "S1".

To illustrate a change in supply, we need to show a shift in the entire supply curve. Let's assume that the production cost of the good decreases, so suppliers are willing to produce and sell more of the good at all prices. Draw the new supply curve: - Draw a new upward-sloping line to the right of the initial supply curve, and label it as "S2". This represents an increase in supply due to the decrease in production costs. Note that the entire supply curve has shifted to the right, indicating that more quantity is being supplied at every price level.

Now we will illustrate a change in quantity supplied, which occurs due to a change in the price of the good. Assume the price of the good increases, leading to a movement along the initial supply curve. Draw the new price level: - Mark a point on the vertical axis representing the higher price (P2) and another point representing the initial price (P1). - Draw horizontal lines from both points (P1 and P2) to the initial supply curve (S1). Label the points where the price levels intersect with the supply curve: - Label the intersection of P1 and S1 as A and the intersection of P2 and S1 as B. Observe that there is a movement along the supply curve from point A to point B due to the increase in price. This represents a change in quantity supplied as suppliers are willing to supply more at a higher price. In conclusion, a "change in supply" is illustrated by a shift in the entire supply curve, while a "change in quantity supplied" is represented by a movement along the supply curve due to changes in price.