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
Famous quotes containing the words movements and/or shifts:
“He sways his head from side to side, with movements like a snake;
And when you think he’s half asleep, he’s always wide awake.”
—T.S. (Thomas Stearns)
“The flattering, if arbitrary, label, First Lady of the Theatre, takes its toll. The demands are great, not only in energy but eventually in dramatic focus. It is difficult, if not impossible, for a star to occupy an inch of space without bursting seams, cramping everyone else’s style and unbalancing a play. No matter how self-effacing a famous player may be, he makes an entrance as a casual neighbor and the audience interest shifts to the house next door.”
—Helen Hayes (1900–1993)