What causes an upwards movement along a supply curve of a commodity?

The correct answer is Option 1: Increase in price of the commodity

• A movement along the supply curve (rather than a shift) occurs when the price of the commodity changes while other factors remain constant.
• Upward movement along the supply curve happens when:
  • Price of the commodity increases ⬆ → Quantity supplied increases ⬆
  • This follows the Law of Supply, which states that as price increases, firms are willing to produce and sell more.
• This is represented as a movement upward along the existing supply curve.

 "Decrease in the price of the commodity" → Incorrect because a decrease in price causes a downward movement along the supply curve, not upward.

"Increase in production technology" → Incorrect because better technology shifts the supply curve rightward, rather than causing movement along it.

 "Decrease in factor costs" → Incorrect because lower costs increase supply, shifting the supply curve to the right, rather than causing movement along it.