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What is the difference between a shift in the demand curve and a movement along the demand curve?

User Askilondz
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Final answer:

The difference between a shift in the demand curve and a movement along the demand curve is that the former is caused by external factors, while the latter is solely due to changes in the good's own price.

Step-by-step explanation:

The difference between a shift in the demand curve and a movement along the demand curve pertains to what causes the change in the quantity demanded of a good or service. A shift in the demand curve occurs when a factor other than the price of the good itself changes, leading to a new demand curve.

A movement along the demand curve, on the other hand, is the result of a change in the price of the good itself. When the price increases, the quantity demanded decreases, and this is represented by moving up along the demand curve, which is a contraction in demand.

It is important to note that a shift in one curve never causes a shift in the other curve. Rather, a shift in one curve, such as the demand curve, can cause a movement along the second curve, such as the supply curve.

User Jwhazel
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