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:
“Awareness of the stars and their light pervades the Koran, which reflects the brightness of the heavenly bodies in many verses. The blossoming of mathematics and astronomy was a natural consequence of this awareness. Understanding the cosmos and the movements of the stars means understanding the marvels created by Allah. There would be no persecuted Galileo in Islam, because Islam, unlike Christianity, did not force people to believe in a “fixed” heaven.”
—Fatima Mernissi, Moroccan sociologist. Islam and Democracy, ch. 9, Addison-Wesley Publishing Co. (Trans. 1992)
“I have rather a strange objection to talking from the back platform of a train.... It changes too often. It moves around and shifts its ground too often. I like a platform that stays put.”
—Woodrow Wilson (1856–1924)