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MICROECONOMICS
DEMAND
Movement along the demand curve
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Abnormal demand curve
MICROECONOMICS > DEMAND > Movement along the demand curve
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MICROECONOMICS > DEMAND > Movement along the demand curve
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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
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