Question

1) What is the difference between a "shift in the demand curve" and a "movement along the demand curve"? 소 소 2) Name at least three variables that can affect the demand for a product and the market equilibrium. 소 소 소 3) Name at least three variables that can affect the supply for a product and the market equilibrium. 소 4) a. Draw a graph to illustrate the effect of an increase in demand on the price and quantity in a market. b. Draw a graph to illustrate the effect of a decrease in demand on the price and quantity in a market. c. Draw a graph to illustrate the effect of an increase in supply on the price and quantity in a market. d. Draw a graph to illustrate the effect of a decrease in supply on the price and quantity in a market." e. What happens when demand increases and supply increases at the same time?

Answer 1

Question 1 : What is the difference between a shift in the demand curve and movement along the demand curve ?

Answer : A demand curve shows the quantity demanded of a commodity by an individual at various price levels. When there is change in factors that effect and influence the quantity demanded of a commodity there will be either shift in demand curve and movement along demand curve. How the demand curve changes i.e. whether it should shift or move along the curve depends upon which factor had changed. A movement along demand curve for a particular commodity will take place when there is change in price of that particular commodity. While factors other than price i.e. income of the consumer, price of related goods, taste and preference of the consumer etc... changes when price remain same, the supply curve will shift either rightwards or leftwards.