Demand and Supply Curves. Movement and shifts

Business & Finance
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What is the difference between a movement along and a shift of the demand and supply curves? What are the factors that lead to shifts in supply and demand curves?

Oct 29th, 2015

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Movement along the demand curves is influenced by consumer demands, it occurs when the prices of goods changes. for instance, a movement along the demand curve may occur when a bread manufacturer reduces or increase the prices of the bread. Change in the prices of bread may influence consumers to buy more or few breads.

While Shift of demand and supply curves occurs when consumers adopt a different perception about a certain good. If consumers are willing to pay more for the  good , or they want to pay pay more to have the good, the demand curve shifts to the right. If consumers pay less for the product, the curve shifts to the left.

Factors that lead to shifts in demand curves include; changes in consumers tastes and preferences, change in level of incomes of consumers, and the change in perception or notion about the product.  

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Oct 29th, 2015

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Oct 29th, 2015
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Oct 29th, 2015
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