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How much a non-price determinant changes (and which one changes) will ultimately determine:

a. direction of the shift in the demand curve
b. size of the movement along the demand curve
c. the size of the shift in the demand curve
d.difference between a change in demand and a change in quantity demanded

1 Answer

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Final answer:

The size and type of change in a non-price determinant will affect the direction and magnitude of a demand curve shift, whereas price changes result in movements along the curve without shifting it.

Step-by-step explanation:

The magnitude and specific non-price determinant that changes will ultimately determine the following:

  • a. Direction of the shift in the demand curve: If a determinant causes an increase in demand (such as the release of an innovative new video game), the demand curve will shift to the right. Conversely, if demand decreases (like when a new game system supersedes the old one, making old games less desirable), the demand curve will shift to the left.
  • b. Size of the movement along the demand curve: This pertains to a change in quantity demanded due to a change in the price of the good or service, and not to shifts in the demand curve itself.
  • c. The size of the shift in the demand curve: The actual change in a non-price determinant, like consumer income or tastes, will dictate how substantial the shift in the demand curve will be—whether it's a large or small shift.
  • d. Difference between a change in demand and a change in quantity demanded: A change in demand means the entire demand curve shifts because of a non-price determinant. However, a change in quantity demanded refers to a movement along the demand curve, which is caused exclusively by a change in the price of the good or service.

Summing up, demand determinants can cause the entire demand curve to shift, affecting the equilibrium quantity and price, while a change in price results in a movement along the curve without shifting it.

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