Sunday, March 10, 2019

Difference Between Movement And Shift In Demand Curve

Difference Between Movement And Shift In Demand Curve
The main dissimilarities or difference between movement along and shift in demand curve can be studied as follows:
1. Introduction
Movement In Demand Curve: Change in the quantity of demand due to the change in the price of a commodity.
Shift In Demand Curve: Change in the quantity of demand of a commodity due to the change in other factors (income, taste, price of substitutes etc) than price.

2. New Curve

Movement In Demand Curve: No need to create new curve
Shift In Demand Curve: New demand curve should be drawn

3. Cause/Determinant

Movement In Demand Curve: It is caused by change in the price
Shift In Demand Curve: It is caused by change in other factors (but not change in the price of the product)

4. Also Called

Movement In Demand Curve: It is also called quantity demanded
Shift In Demand Curve: It is also called change in demand

     
Also Read: 

5. Movement/Shift

Movement In Demand Curve: Demand curve always move either upward or downward
Shift In Demand: Demand curve either shifts to the right or to the left

6. Effect/Result

Movement In Demand Curve: It creates expansion (extension) or contraction in demand
Shift In Demand Curve: It crease increase or decrease in demand.

Movement Vs Shift In Demand Curve (Comparison Chart)

Basis

Movement In Demand Curve
Shift In Demand Curve
Introduction

Change in demand due to the change in price
Change in demand due to the change in other factors 
New Curve

Not needed
Should be created
Determinant

Price
Other factors (but not price)
Also Called

Quantity demanded
Change in demand
Shift/Movement

Upward/Downward
Right/Left
Effect

Expansion or contraction in demand
Increase or decrease in demand

I hope this post is helpful to understand the difference between movement and shift in demand curve and to make comparison between them.