Movements and Shifts of Demand and Supply Curves
Microeconomics
A compact diagram comparing movements along demand and supply curves with shifts of the demand and supply curves.
Curves and Elements
shift of demand
Shift of Demand Curve: The whole demand curve moves left or right because of a change in a non-price determinant such as income, tastes, or the price of related goods.
shift of supply
Shift of Supply Curve: The whole supply curve moves left or right because of a change in a non-price determinant such as costs of production, technology, taxes, or subsidies.
movement along demand
Movement Along Demand Curve: A change in the good’s own price causes movement from one point to another on the same demand curve.
movement along supply
Movement Along Supply Curve: A change in the good’s own price causes movement from one point to another on the same supply curve.
key difference
Key Difference: Price changes cause movements along curves, while non-price changes cause shifts of curves.
A movement along the demand curve is caused by a change in the good’s own price, leading to an extension or contraction in demand.
A movement along the supply curve is caused by a change in the good’s own price, leading to an extension or contraction in supply.
A shift of the demand curve occurs when a non-price determinant of demand changes, causing demand to increase or decrease at every price.
A shift of the supply curve occurs when a non-price determinant of supply changes, causing supply to increase or decrease at every price.
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