Final answer:
A movement along a demand curve is due to a change in the good's price, leading to a different quantity demanded. A shift in demand is caused by external factors like consumer preferences, resulting in a new demand curve position.
Step-by-step explanation:
The difference between a movement along a demand curve and a shift in demand in microeconomics lies in what causes the change in quantity demanded. C) A movement along a demand curve is caused by a change in the price of the good itself, which results in a change in the quantity demanded. For example, if the price of a product decreases, consumers will typically buy more of it, demonstrating a movement down the demand curve.
On the other hand, a shift in demand occurs due to external factors other than the good's price, such as changes in consumer preferences, incomes, prices of related goods, or expectations. These factors affect the overall desire or market demand for the product, causing the whole demand curve to shift rightward (increase in demand) or leftward (decrease in demand).
To answer the original question, the correct distinction is given by option C: A movement along a demand curve is due to changes in the price of a good itself, while a shift in demand results from changes in external factors like consumer preferences.