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Saturday, 19 May 2018

Movement along demand curve: Meaning with example

Movement along demand curve

1.Movement along demand curve means upward and downward movement on demand curve. It does not mean in any case shifting of demand curve rightward or leftward.

2.Downward movement means increase in quantity demanded due to fall in own price of a commodity, other factors remaining constant.

3.Upward movement means decrease in quantity demanded due to rise in price of own commodity.

4.Upward movement is called contraction and downward movement is called extension.

Points to remember:

If you are asked to explain the difference between movement along demand curve and shifting of demand curve then answer is simple  The answer is hidden in question itself. Movement along demand curve means there is movement upward or downward on demand curve and it happens only when own price of commodity changes. 

Shifting of demand curve means demand curve changes its position to forward or leftward.

Movement is related with the term " quantity demanded" and shifting is related with the term " demand". E.g what is the difference between change in quantity demanded(this is movement) and change in demand( this is shift in demand)?.

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