How will the following affect the supply curve- Commodity 'Z' when its price rises?

There will be a movement from a lower point to an upper point on the same supply curve

Tthe correct answer is option 2: There will be a movement from a lower point to an upper point on the same supply curve

1. When quantity supplied of a commodity changes due to change in its own price, assuming, other things being equal, it is known as change in quantity supplied. It is represented by movement along the same supply curve. It is of two types:

a. Extension/Expansion of Supply: This refers to the movement along the existing supply curve. It occurs when the price of a commodity increases, and as a result, the quantity supplied also increases, with all other factors remaining constant. For example, supply of tea increases due to rise in its prices, other things being equal.

b. Contraction of Supply:This refers to a movement along the existing supply curve. It occurs when the price of a commodity decreases, and as a result, the quantity supplied also decreases, while all other factors remain constant. For example, supply of tea decreases due to fall in its prices, other things being equal.