Movements Versus Shifts
The demand curve is a two-dimensional depiction of the relationship between price and quantity demanded. Movements along the curve occur only if there is a change in quantity demanded caused by a change in the good's own price. A shift in the demand curve, referred to as a change in demand, occurs only if a non-price determinant of demand changes. For example, if the price of a complement were to increase, the demand curve would shift leftward reflecting a decrease in demand. Conversely, a rightward shift in the demand curve reflects an increase in demand. The shifted demand curve represents a new demand equation.
Movement along a demand curve due to a change in the good's price results in a change in the quantity demanded, not a change in demand. A change in demand refers to a shift in the position of the demand curve in two-dimensional space resulting from a change in one of the other arguments of the demand function.
Read more about this topic: Demand (economics)
Famous quotes containing the words movements and/or shifts:
“His reversed body gracefully curved, his brown legs hoisted like a Tarentine sail, his joined ankles tacking, Van gripped with splayed hands the brow of gravity, and moved to and fro, veering and sidestepping, opening his mouth the wrong way, and blinking in the odd bilboquet fashion peculiar to eyelids in his abnormal position. Even more extraordinary than the variety and velocity of the movements he made in imitation of animal hind legs was the effortlessness of his stance.”
—Vladimir Nabokov (1899–1977)
“God is a foreman with certain definite views
Who orders life in shifts of work and leisure.”
—Seamus Heaney (b. 1939)