Posted by Anjali Kaur on Aug 11, 2020

Difference between a movement along the demand curve and shift in demand

We have gone through in detail the change in demand and change in quantity demanded. I was getting some requests to provide a proper difference between a movement along the demand curve and a shift in demand. I also plan to discuss the extension of demand and the contraction of demand. In the end, I will also provide a proper difference between the increase in demand and decrease in demand. I know, its a lot to process, but have faith, it’s easy. Let’s learn.

Movement Versus Shift in Demand Curve

Movement Along the Demand CurveShift in the Demand
When the demand for commodity changes due to change in its price, keeping other things constant.When demand of a commodity changes due to change in other factors affecting demand rather than price of a commodity.
It is also known as change in quantity demanded.It is also known as a change in demand.
The reason of change in quantity demand is due to change in price of commodity itself.The reason for a change in demand is due to the change in other factors than price. Like, due to change in related goods price, income change, tastes and preferences, and future expectations.
It is of two types:
Expansion of demand
Contraction of demand
It is of two types:
Increase in demand
Decrease in demand
Expansion of demand is caused by fall in price of a commodity, keeping other things constant.

Increase in demand which causes a rightward shift of demand curve due to an increase in income in case of normal goods, an increase in the price of substitute goods, a decrease in the price of complementary goods.
3.2 Shifts in Demand and Supply for Goods and Services ...
Contraction of demand is caused by rise in price of a commodity, keeping other things constant.
CHANGE IN DEMAND - COMMERCEIETS
The decrease in demand is causes leftward shift of demand curve due to a decrease in income in case of normal goods, a decrease in the price of substitute goods, increase in the price of complementary goods.
Shift in Demand Curve: Definition, Causes, Examples

Extension of demand versus Contraction of demand

Extension of demandContraction of Demand
It is the rise in demand due to fall in price of a commodity itself, keeping other things constant.It is fall in demand due to rise in price of a commodity, keeping other things constant.
It results in a downward movement along the demand curve.It results in upward movement along the demand curve.
Demand curve:

Demand curve:3.2 Shifts in Demand and Supply for Goods and Services ...

Increase in demand Versus Decrease in demand

Increase in DemandDecrease in Demand
It causes rightward shift of the demand curve.It causes leftward shift of the demand curve.
Increase in the income of the consumer in case of normal goods. Decrease in the income of the consumer in case of normal goods.
Increase in the price of substitute goods.Decrease in the price of the substitute goods.
Fall in the price of complementary goods.Rise in the price of complementary goods.
Changes in tastes and preferences in favor of the commodity.Changes in tastes and preferences against the commodity.
It is also known as Rightward shift in demand curve.It is also known as Leftward shift in demand curve.

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