ECONOMICS

THE DEMAND CURVE

 • Demand is the amount of a
WHAT IS good that will be bought at a
given price over a period of
DEMAND? time.
• Demand curve is a line drawn
on a graph that shows how
much of a good will be bought
at different prices.
 Shift in the
demand curve .

• Movement to the left of the entire demand curve

when there is any change in any factor affecting the
demand curve except price.
INVERSE RELATIONSHIP.
• I am

Between price and quantity

demanded, when price
increases quantity demanded
falls, and when the prices
decreases, quantity demanded
rises.

Price Quantity
 The movement
along the
demand curve
•
A movement denotes a change in
both price and quantity demanded
from one point to another on the
demand curve.

A movement occurs when a change

in supplied is caused only by a
change in price and vice versa.
 Differences between movement and shift in
the demand curve.
MOVEMNET ALONG THE CURVE SHIFT IN THE DEMAND CURVE

1)Movement depends on the price of 1)Depends on the other factors of

the product. demand other than price.
2)We see a change along the demand 2)We see a change in the position of the
curve. curve.
3)We see an increase or decrease in the 3)We see a change in the demand itself.
quantity demanded.
Factors that may shift
the demand curve. • Some of the main factors are :
1)demographic changes
There are many possible 2)price of substitutes
factors that can affect the 3)changes in taste/fashion
demand. 4)advertising
. Price is the main factor that income
effects the quantity
demanded. .
But it does not cause a shift
on the curve.