Management Notes

Reference Notes for Management

Movement along Demand Curve and Shifts of Demand Curve | Microeconomics

Demand Curve

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 the demand curve and shifts of the demand curve are fundamental concepts in economics that describe how changes in various factors affect the quantity demanded of a good or service and, consequently, its price and the overall market equilibrium.

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