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EDX3 KCF Movements and Shifts Presentation
EDX3 KCF Movements and Shifts Presentation
EDX3 KCF Movements and Shifts Presentation
Using D1, explain what is meant by a movement along the demand curve:
A movement along the demand curve shows how quantity demanded responds
to a change in price.
Using D1 and D2, explain what is meant by a shift of the demand curve:
A shift of the demand curve shows how demand responds to a change in
a non-price factor at any given price.
Extension answers — how many of the non-price factors did you guess
correctly?
• An increase in the price of computer games (price of substitutes).
• A decrease in the price of games consoles (price of complements).
• A successful advertising campaign for video games (tastes and fashion).
These three factors, in addition to income, represent the four non-price factors that
cause the demand curve to shift.
Task: Which diagram shows a movement and which shows a shift in supply?
Explain what is meant by a movement along the supply curve and a shift of the
supply curve.
Extension: Can you think of any factors which could cause the supply of a product
to change when the price remains unchanged?
4 Market: Alcohol
Event: The government decides to increase the tax charged on alcohol.
Answer: A shift (decrease) of the supply curve.