What is the difference between a shift and a movement in the demand (or supply) curve?

A shift in the demand curve occurs when there is a non-price determinant of demand, including a change in consumers' income, changing trends and tastes, changes in the price of complementary and substitute goods, population changes and expected future prices, income and credit. This is illustrated by a shift in the demand curve from D1 to D2 or D3 (as seen in the diagram) depending on whether this determinant increases or decreases demand.  


A movement along the demand curve arises from a change in price and it remains in the same demand curve (as seen in the diagram). This also applies to the supply curve, where shifts arise from changes in the price of factors of production, change in the price of a jointly supplied or competitive supply good, changes in technology, productivity, government policies i.e. taxes and subsidies, amongst others. 

Answered by Sofia D. Economics tutor

14284 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

1. What is a floating exchange rate system and what factors influence the level of a country’s exchange rate?


Why are some government bonds negative?


Evaluate the possible impact on economic performance that may result from a government decision to bring cost-push inflation under control. (15 marks)


What are the differences/similarities between perfect competition and monopolistic competition?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2024

Terms & Conditions|Privacy Policy