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Question
Differentiate between movement along demand curve and shift in demand curve.
Distinguish Between
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Solution
| Basis of Difference | Movement Along Demand Curve | Shift in Demand Curve |
|---|---|---|
| Cause | Change in the commodity’s own price | Change in a factor other than its own price |
| What changes | Quantity demanded | Demand at each price |
| Curve effect | Movement along the same curve | The entire curve moves to a new position |
| Increase | A fall in price causes downward movement (expansion) | A favourable change causes a rightward shift (increase in demand) |
| Decrease | A rise in price causes upward movement (contraction) | An unfavourable change causes a leftward shift (decrease in demand) |
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