
Difference between a movement along the demand curve and shift in demand
We have gone through in detail the change in demand and the 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 the decrease in demand. I know, it’s a lot to process, but have faith, it’s easy. Let’s learn.
A quick note: Subscribe to our website to get answers to your curriculum questions.
Also, subscribe to my YouTube channel. But before subscribing, check it out.
Disclosure: Some of the links on the website are ads, meaning at no additional cost to you, I will earn a commission if you click through or make a purchase. Please support me so that I can continue writing great content for you.
Movement Versus Shift in Demand Curve
Movement Along the Demand Curve | The shift in the Demand |
When the demand for commodity changes due to a change in its price, keeping other things constant. | When the demand of commodity changes due to change in other factors affecting demand rather than the price of a commodity. |
It is also known as a change in quantity demanded. | It is also known as a change in demand. |
The reason for a change in quantity demand is due to a change in the price of the commodity itself. | The reason for a change in demand is due to the change in other factors than price. Like, changes 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 a fall in the price of a commodity, keeping other things constant. | An increase in demand causes a rightward shift of the demand curve due to an increase in income in the case of normal goods, an increase in the price of substitute goods, a decrease in the price of complementary goods. |
Contraction of demand is caused by rising in the price of a commodity, keeping other things constant.![]() | The decrease in demand is causing a leftward shift of the demand curve due to a decrease in income in the case of normal goods, a decrease in the price of substitute goods, increase in the price of complementary goods.![]() |
Extension of demand versus Contraction of demand
Extension of demand | Contraction of Demand |
It is the rise in demand due to a fall in the price of a commodity itself, keeping other things constant. | It is a fall in demand due to a rise in the 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: |
Increase in demand Versus Decrease in demand
Increase in Demand | Decrease in Demand |
It causes a rightward shift in the demand curve. | It causes a leftward shift in the demand curve. |
Increase in the income of the consumer in the case of normal goods. | Decrease in the income of the consumer in the 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 the Rightward shift in the demand curve. | It is also known as the Leftward shift in the demand curve. |
Feel free to join my Facebook group meant for economics students, and you can also subscribe to us.
You can read more related posts:
- Introduction to Economics
- What do you mean by an economy?
- What are the Central problems of the economy?
- Production Possibility Curve
- What causes PPC to shift?
- What does the opportunity cost mean?
- The point on and off the Production Possibility Curve
Feel free to join our Facebook group and subscribe to this website to get daily educational content in your mailbox.
Happy Learning!
Disclosure: Some of the links on the website are ads, meaning at no additional cost to you, I will earn a commission if you click through or make a purchase. Please support me so that I can continue writing great content for you.
Photo by Craig Garner on Unsplash