Changes in demand

• What are the 2 factors of demand?

  Movement along the demand curve and Movement of the demand curve (shift in demand)
• Due to changes in price, there are 2 movements along the demand curve. They are..

  • Extension demand: which is a downward movement along the demand curve due to fall in price.
  • Contraction demand: which is an upward movement along the demand curve due to rise in price.
• There are 2 movements of the demand curve. They are..

  • Increase in demand: more is now demanded at each and every price.
  • Decrease in demand: less is demanded at each and every price