Final answer:
KPI movements reflect changes within a business, such as increases in profit prompting more production or decreases in costs leading to a higher supply. Movements along the demand curve impact price and quantity, altering demand elasticity.
Step-by-step explanation:
When one Key Performance Indicator (KPI) moves up or down, it may indicate various changes within a business or economic context. For example, if a firm's profits increase, it can be more motivated to produce output, as increased production tends to increase profits further. Similarly, when a firm experiences a decrease in production costs, it will likely supply a larger quantity of its product at any given price, demonstrated by a shift of the supply curve to the right. On the flip side, as one moves along the demand curve, changes in quantity and price affect the percentages for a specific price or quantity difference. These changes then can alter the ratios of these percentages, impacting the demand elasticity, which reflects how sensitive the quantity demanded is to a change in price.