84PART TWOSUPPLY AND DEMAND I: HOW MARKETS WORK“Supply” refers to the position of the supply curve, whereas the “quantity sup-plied” refers to the amount suppliers wish to sell. In this example, supply does notchange because the weather does not alter firms’ desire to sell at any given price. In-stead, the hot weather alters consumers’ desire to buy at any given price andthereby shifts the demand curve. The increase in demand causes the equilibriumprice to rise. When the price rises, the quantity supplied rises. This increase in quan-tity supplied is represented by the movement along the supply curve.To summarize, a shift inthe supply curve is called a “change in supply,” and ashift inthe demand curve is called a “change in demand.” A movement alongafixed supply curve is called a “change in the quantity supplied,” and a movementalonga fixed demand curve is called a “change in the quantity demanded.”Example: A Change in Supply
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