Change in quantity supplied vs change in supply
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The quantity supplied is the amount that producers plan to sell during a given time period at a particular price.
Price is just one of the factors that affect producers' supply decisions. The supply curve isolates the impact of price on the quantity of a product supplied and assumes that all other factors stay the same.
- A change in quantity supplied is caused by a price change ONLY. It is a movement along the same supply curve.
- When one of the other factors that influence selling plans changes, there is a change in supply and a shift of the supply curve.
A tax will shift the supply curve up by the amount of the tax.
At every price level, less is supplied. For example, at price P0, originally Q0 is supplied. After the tax, Q1 is supplied at price P0.