Question

1. What is the difference between a shift in the demand curve and a movement along the demand curve?
2. What are two examples of changes that could cause a shift in demand?

Answer 1

For understanding the shifting and movement on demand curve, we need to understand the difference between demand and quantity demanded

When the factor present is only price then there is change in the quantity demanded

This is shown by the movement on the demand curve

The movement can be either upwards or downwards

When more than the price factors are involved like-

• Presence of substitutes or complements in the market
• Taste and preferences
• Expectation level of buyers
• Income level of buyers

Then then this will cause the shift of whole demand curve to the rightwads or leftwards.

The above factors are also responsible for change in the shift of demand

So the basic difference between them two is that one of them shows only the movement and other shows the whole shifting