What's the difference between movements along and shifts in the demand curve?

(the answer to this question would be assissted by the use of diagrams) Movements along the demand curve are caused by changes in price. A change in price will move to a new point on the demand curve. For example, an increase in price will reduce demand (therefore causing a contraction in demand to the new price point). The reverse of this with an increase in demand due to a decrease in price will cause an extension in demand. Shifts in the demand curve are caused by increases in demand at every price level. And is shown by drawing a whole new demand curve. This is caused by changes in the underlying components affecting demand. For example, changes in incomes. If incomes increase people are able to afford more of the product at every price level and therefore the demand curve will shift outwards.

SL
Answered by Sarah L. Economics tutor

3103 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Explain why the demand for food is relatively price inelastic


Analyse how a fall in the value of a currency may increase a current account surplus on the balance of payments.


What are negative externalities, and what policies can the government implement to reduce them?


Explain the concept of price elasticity


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning