Movement Along the Demand Curve
Microeconomics
A diagram showing movements along a demand curve caused by changes in the price of the good itself.
Curves and Elements
demand
Demand Curve (D): Shows the inverse relationship between price and quantity demanded.
point a
Point A: The original position on the demand curve at price PA and quantity QA.
extension
Extension in Demand (A to B): A movement down the demand curve caused by a fall in price from PA to PB.
contraction
Contraction in Demand (A to C): A movement up the demand curve caused by a rise in price from PA to PC.
price change
Price Change: A change in the good’s own price causes movement along the demand curve rather than a shift of the curve.
A movement along the demand curve occurs when the good’s own price changes.
A fall in price from PA to PB causes an extension in demand, moving from point A to point B.
A rise in price from PA to PC causes a contraction in demand, moving from point A to point C.
Only price changes cause movement along the demand curve; non-price factors shift the whole demand curve.
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