eco365
Economic Analysis Dexter Wilson ECO/365 2/17/2014
When we talk about the difference between a movement along and a shift of the demand curve we have to know that one works off of demand and the other works off of quantity demand. They both work off the law of demand but it states that when the quantity demand rises the price will tend to fall. On the other hand when the quantity supplied goes up the prices will go up too. What we will talk about it the following. How equilibrium price and demand is impacted by an increase in supply and demand, increase in both. Lastly I will talk about the role that supply and demand is used in making decisions in a real world scenario.
There are some factors that can affect the supply and demand that are not just price and this is what is called shift factors. The shift factors in demand can include things such as, prices of other products, tastes, the expectations and also the taxes. Shift factors in supply would include the price of inputs, technologies. There is a difference in demand and quantity demand, demand is described as a good that will be bought at various prices as on the other hand quantity demand is a good that can be bought at a specific price. The movement along the demand curve is when there is a change in the price which changes the quantity demand. The shift in the demand curve is when there is a change in anything other than the price that will end up affecting the demand and will change the entire demand curve. The difference between the movement along the demand curve and shift of the demand curve is when something changes the price it will change the demand which is the movement along, and when something affects or changes anything other than the price it is considered a shift in demand.
The one thing about supply and demand is that a person can always substitute for another good or product. When the quantity
When we talk about the difference between a movement along and a shift of the demand curve we have to know that one works off of demand and the other works off of quantity demand. They both work off the law of demand but it states that when the quantity demand rises the price will tend to fall. On the other hand when the quantity supplied goes up the prices will go up too. What we will talk about it the following. How equilibrium price and demand is impacted by an increase in supply and demand, increase in both. Lastly I will talk about the role that supply and demand is used in making decisions in a real world scenario.
There are some factors that can affect the supply and demand that are not just price and this is what is called shift factors. The shift factors in demand can include things such as, prices of other products, tastes, the expectations and also the taxes. Shift factors in supply would include the price of inputs, technologies. There is a difference in demand and quantity demand, demand is described as a good that will be bought at various prices as on the other hand quantity demand is a good that can be bought at a specific price. The movement along the demand curve is when there is a change in the price which changes the quantity demand. The shift in the demand curve is when there is a change in anything other than the price that will end up affecting the demand and will change the entire demand curve. The difference between the movement along the demand curve and shift of the demand curve is when something changes the price it will change the demand which is the movement along, and when something affects or changes anything other than the price it is considered a shift in demand.
The one thing about supply and demand is that a person can always substitute for another good or product. When the quantity