Which statement best describes the relationship between movements and shifts in supply?

The statement that movements are due to price changes, while shifts are due to other factors, accurately represents the fundamental economic concepts of supply curves in relation to market dynamics.

Movements along the supply curve illustrate how the quantity supplied changes in response to a change in the market price of a good or service. For instance, if the price of a product increases, producers might be incentivized to supply more of it, resulting in a movement up along the supply curve. Conversely, if the price drops, the quantity supplied may decrease, reflecting a downward movement along the curve.

On the other hand, shifts in the supply curve occur when there are changes in factors other than the price that affect supply. These factors may include changes in production costs, advancements in technology, the number of suppliers in the market, or changes in government policy. A shift to the right in the supply curve indicates an increase in supply at every price level, while a leftward shift denotes a decrease in supply.

This distinction is crucial for understanding how market forces operate, as it highlights the different underlying mechanisms that drive changes in supply.