Q.Distinguish between a movement along the demand curve and a shift of the demand curve, with examples.
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Start your 14-day free trial to unlock the full solution →Movement along the demand curve (change in quantity demanded). Caused by a change in the good's own price, with all else constant. The buyer moves from one point to another on the same curve — a fall in price gives an extension (downward-right), a rise gives a contraction (upward-left).
Shift of the demand curve (change in demand). Caused by a change in a non-price determinant — income, prices of related goods, tastes, expectations, number of buyers. The whole curve moves — a rightward (outward) shift is an increase in demand, a leftward (inward) shift is a decrease in demand, because a different quantity is now demanded at every price.
| Basis | Movement along | Shift |
|---|---|---|
| Cause | Own price | Non-price determinant |
| What moves | A point on the same curve | The entire curve |
| Name | Change in quantity demanded | Change in demand |
| Types | Extension / Contraction | Increase / Decrease |
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