What is the Difference Between Movement and Shift in Demand Curve?

The difference between movement and shift in the demand curve lies in the factors that cause these changes and the impact they have on the curve:

1. Movement: A movement along the demand curve occurs due to a change in the price of the product, leading to a change in quantity demanded. The movement represents a change in the quantity demanded along the existing demand curve, with other factors affecting demand, such as income or preferences, remaining constant. Factors that cause movement in the demand curve include change in the price of the product and change in quantity demanded.
2. Shift: A shift in the demand curve refers to a change in the demand itself caused by non-price factors. The shift represents a change in the entire demand curve, with the factors that affect demand other than price, such as income, consumer tastes and preferences, and prices of related goods. Factors that cause a shift in the demand curve include changes in income levels, consumer tastes and preferences, prices of related goods, expectations of future prices, and population size and composition.

In summary:

• Movement: Occurs due to a change in the price of the product, leading to a change in quantity demanded along the existing demand curve.
• Shift: Occurs due to factors other than price, causing a change in the entire demand curve.

Comparative Table: Movement vs Shift in Demand Curve

The difference between movement and shift in the demand curve lies in the factors that cause these changes and the impact they have on the curve. Here is a summary of the differences:

In summary, a movement in the demand curve occurs when there is a change in the quantity demanded due to a change in the price of the good or service. On the other hand, a shift in the demand curve occurs due to changes in the determinants other than price, such as income, taste, expectation, population, and price of related goods.