Movement along the demand curve

Subdecks (3)

Cards (15)

  • Movement
    A normal demand curve slopes downwards from the left to right. It has a negative slope i.e when price increases demand decreases and vice versa
  • Movement is caused ONLY by changes in prices and not any other factor affecting demand.
  • Increase in price , decrease in qty dd
    • Decrease in quantity due to increase in price is known as contraction. ( movement from point a to b)
    • Price increases from P0 to P1
    • Quantity demanded decreases from Q0 to Q1
  • Decrease in price, increase in qty dd
    • Increase in quantity demanded due decrease in price is known as expansion/extension. ( movement from point a to c)
    • Price reduces from P0 to P2
    • Quantity demanded increases from Q0 to Q2