Movement along Demand Curve and Shifts of Demand Curve | Microeconomics

Movement along Demand Curve and Shifts of Demand Curve | Microeconomics | BBA | BBA-BI | BBA-TT | BCIS


The demand curve is a graphic representation of a demand schedule. It is the graph depicting the relationship between the price of a certain commodity and the amount of it that consumers are willing and able to purchase at any given price.

Demand curves are used to estimate behaviors in competitive markets and are often combined with supply curves to estimate the equilibrium price and the equilibrium quantity of that market.

Movement along Demand Curve and Shifts of Demand Curve

S.No Movement  Along Demand         Curve

(Change In Quantity Demanded)

Shift Of Demand Curve

(Change In Demand)

1.Movement  Along Demand Curve is the change in quantity demanded for a good due to change in the price of the same good.Shift Of Demand Curve is the change in demand for a well due to change in factors other than price.
2.Extension of demand occurs when demand for a quantity increases with the fall in price. This is the case of rightward movement along the same demand curve.An increase in demand occurs when demand increases with the change in factors other than price. This is the case of a rightward shift in the demand curve.
3.Contraction of demand occurs when demand for a quantity decreases with the rise in price. This is the case of leftward movement along the same demand curve.A decrease in demand occurs when demand decreases with the change in factors other than price. This is the case of the leftward shift in the demand curve.
4.Movement  Along Demand Curve is expressed by the different points on the same demand curve.Shift Of Demand Curve is expressed by the shift in the entire demand curve either rightwards or leftward.

 

 

 

 

 

 

 

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