Advertisements
Advertisements
Question
Distinguish between “movement along the demand curve” and shift of a demand curve.
Advertisements
Solution
| Movement along the demand curve | Shift of a demand curve | |
| (i) | It consists of the extension of demand and the contraction of demand. | It consists of an increase in demand and a decrease in demand. |
| (ii) | Other things being equal, when there is a change in the price of a good, the resulting change in demand is defined as movements· along the demand curve. | When demand changes on account of factors other than a change in price is called a shift of a demand curve. |
| (iii) | The change in quantity demanded is shown on the same or original demand curve. | The change in demand is shown on the different demand curve. |
| (iv) | Extension of demand |
Increase in demand |
| (v) | Contraction of demand |
Decrease in demand |
APPEARS IN
RELATED QUESTIONS
What is meant by the contraction in demand?
As a result of rise in consumer's income, the demand curve for coarse-grain (inferior good) will:
Define decrease in demand.
Give two reasons for the shift of the demand curve towards the left.
With the help of a suitable diagram, distinguish between a change in quantity demanded and a change in demand.
What causes an upward movement along a demand curve?
What causes a downward movement along a demand curve?
With the help of a suitable diagram, explain expansion in demand.
State whether the following statement is true or false. Give reasons.
A change in quantity demanded as a result of price change will imply a shift of the demand curve to the right.
State whether the following statement is true or false. Give reasons.
Contraction of demand is the result of a decrease in the number of consumers.
