Wednesday, June 18, 2014

What is movement alone demand curve/ change in quantity demand and shift in demand/ change in demand? Distinguish between movement alone curve/ change in quantity demand and shift in demand/ change in demand.


Movement alone demand curve/ change in quantity demand:
Movement alone demand curve refers changing quantity demand due to change in price but other factors are constant.
Shift in demand/ change in demand:
Shift in demand means change in demand due to change in various factors but price are constant.

The differences between change in quantity demand and change in demand is:

Subject
Change in quantity demand
Change in demand
1. Means

Change in quantity means movement alone demand curve.
Change in demand curve means shift in demand.
2. Change


Change in quantity demand refers movement alone demand curve due to changing price but other factors are constant.
Change in demand refers shift in demand due to change in factors but price are constant.
3. Graphical presentation  


4. Types

It has two parts- a) extension of demand b) contraction of demand
It has two parts- a) increase in demand b) decrease in demand
5. Analysis

In the above graph movement of demand from b to a is called contraction and b to c is called extension of demand.
In the above graph the shift in demand from DD to DD1 is called increase in demand and from DD to DD2 is called decrease in demand.
6.Price
In movement alone demand curve the price changes.
But in shift in demand the price remain same.
7. Other things
It the other things like In income, taste and habit are remain unchanged.
But in it the other things are changing.

Finally, we can say both movement alone demand and shift in demand helps a business to calculate the possible ways of production.

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