Please explain the difference between a movement along and shift of the demand curve. Show the impact on the equilibrium price and quantity that results from; (1) an increase in demand, (2) an increase in supply, (3) an increase in both supply and demand. Give an example of the role of supply and demand in decision making.© BrainMass Inc. brainmass.com October 9, 2019, 11:41 pm ad1c9bdddf
Because the demand curve reflects how quantity demanded changes with price, the curve does not move when prices change. Any price change is already reflected in any curve by a change in quantity. However, other factors can cause the curve to shift. Anything that would cause people to buy more or less of a good at the same price cause the demand curve to shift. For example, a greater population ...
Difference between movement along and shift of the demand curve; an example of the role of supply and demand in decision making.