Demand and Supply Curve - Movement
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1. What are possible causes of a movement up or down along the demand curve? What are possible causes of a movement up or down along the supply curve? What the short and long-term effects of these changes can be?
2. What are possible causes of a rightward or leftward shift in the demand curve? What are the possible causes of a rightward or leftward shift in the supply curve? What the short and long-term effects of these changes can be?
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1. First it is important to recall that a demand curve shows how much good will be in demand at every price level on the demand curve. Similarly, a supply curve shows how much good will be supplied to the market at every price level on the supply curve. From this, it becomes clear that a movement along the demand curve occurs when there is a change in the price of the good, all other factors (which may affect the demand) remaining unchanged. Similarly a movement along the supply curve occurs when there is a change in the price of the ...
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