Unit 2.1 · Demand
Movements vs Shifts of Demand Curve
AO2AO4Diagram required
Syllabus Requirement
Movement along the curve caused by price change vs. shifts caused by non-price factors.
Assessment Objectives
AO2Application and Analysis
AO4Use of Appropriate Skills
Summary
Movements along the demand curve and shifts of the demand curve describe two different changes in consumer behaviour. A movement along the demand curve happens when the price of the good itself changes, causing a change in quantity demanded. A shift of the demand curve happens when a non-price determinant of demand changes, such as income, tastes, prices of related goods, population, advertising, or expectations. In this case, the whole demand curve moves either to the right, showing an increase in demand, or to the left, showing a decrease in demand.