Question

What is the difference between a shift of the supply/demand and move along the supply/demand line? please provide example and very easy to explain terms so that i can understand and rewrite it.

Answer 1

Answer :There is a difference between shift in supply/ demand vs movement along a demand /Supply curve as follows :

• As when there is movement along a demand curve it means that there is change in quantity demanded due to change in its own price. It means that at this point other factors remains at the same point and movement along a supply curve also means that change in quantity supplied due to change in the price of the product itself.
• As when there is a shift in demand curve which shows that the change in demand due to other factors than price has been influenced a lot where as when there is a shift in the supply curve which shows that due to change in supply I.e other factors than price has been changed.
• It shows that movement always related to the price of the product itself where as shift is always influence by the other factor than price influenced a lot.
• Example of movement means quantity demanded/Supplied change due to influenced by the price of the product where as Example of shifts means change in demand / Supplied due to income of the consumer and price off substitute and complementary as well as income and preference.
• Example : Tea and coffee are two goods. If price of tea increase than there is movement along the demand and supply side where as when price of coffee decline than there is shift in the demand or supply side in order to maximize the return.