New machinery raises a firm's productivity at the same time as the market price of its product falls. How should these changes be shown on a supply diagram?
Supply shifts right because of higher productivity, followed by a movement down along the new curve because of the lower price
Supply shifts left because of higher productivity, followed by a movement up along the new curve
Only a movement down the original curve is shown because both changes affect quantity supplied
Only a rightward shift is shown because a price change cannot cause movement along supply
36 exam-style questions on OCR GCSE Economics 2.3 Supply, covering 2.3.1 What is supply, 2.3.2 Draw a supply curve using data, 2.3.3 Explain a supply curve, 2.3.4 Shifts and movements of the supply curve, 2.3.5 Causes and consequences of supply changes, 2.3.6 Price elasticity of supply, 2.3.7 Draw supply curves of different elasticity, and 2.3.8 Importance of price elasticity of supply. Each one has a worked solution and a mark scheme showing where the marks go.