what is the difference between movement along a demand curve predicted by the Law of Demand and a shift of the whole demand curve or short termed as a shift or change of demand and do the increase or decrease. 300 word answer please
Well I don't know how many words this will be, but I will try to explain it to you. The demand curve is a representation of how much people want something. If the demand curve is shifted to the right, then that means people are willing to pay more for a product, because they want it more. This is different from movement along a demand curve. When you move along the demand curve, you aren't changing how much people demand a certain good, you are changing how many of a good they are demanding. A point on the demand curve is called the quantity demanded. In a different context, you may think of the demand curve as a road headed into a city, and you may think of quantity demanded as billboards. Let's start left on the demand curve, here we are out in the country. There aren't too many billboards (very little quantity demanded). The longer you drive (move right on the curve) you see more billboards (greater quantity demanded). If you want to see more billboards on the road, whether it's further out in the country or closer to the city, you might consider putting the road in a location, perhaps closer to a city that was more popular (increasing the demand, which means moving the entire curve to the right).
I hope this makes sense. I'd be happy to tutor you. Let me know if I can help you in the future. Take care.
Feb 24th, 2015
Did you know? You can earn $20 for every friend you invite to Studypool!