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Do you know …

Do you know …. what a movement in a demand curve is and what causes it? what a shift in a demand curve is and what causes it?. The general demand function. Qd. = f(. P. ,. other factors). Quantity demanded. depends on. price. and. income / wealth. tastes / preferences.

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Do you know …

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  1. CRC Economics

  2. Do you know … • what a movement in a demand curve is and what causes it? • what a shift in a demand curve is and what causes it? CRC Economics

  3. The general demand function Qd = f( P , other factors) Quantity demanded dependson price and income / wealth tastes / preferences prices of other related goods (substitutes & complements) expectations number of buyers CRC Economics

  4. A movement along the demand curve (change in Qd) Qd = f( P , other factors) If Qd changes If Qd changes due to a change in P and other factors staying the same, i.e. DQd DP then there is a movement along the demand curve. CRC Economics

  5. A movement along the demand curve (DQd) P 2. follows a change in P (DP), 3. there is a movement along theexisting demand curve from one point to another. a P1 DP b 1. If a change in Qd (DQd) … P2 D DQd CRC Economics Q1 Q2 Q

  6. A shift in the demand curve (change in demand) Qd = f( P , other factors) If Qd changes due to P being the same and a change in one of the other factors, i.e. DQd D other factors then there is a shift in the demand curve. CRC Economics

  7. A shift in the demand curve (DD) 2. without a change in P (DP = 0), P 3. there is a shift thedemand curve. c DD P1 a 1. If a change in Qd (DQd) occurs … D’ D DQd CRC Economics Q1 Q2 Q

  8. Summary Qd = f (P), other factors = constant (D) DP => DQd a movement along the existing demand curve D other factors => DDa shift in the demand curve CRC Economics

  9. Now you know … • what a movement in a demand curve is and what causes it. • what a shift in a demand curve is and what causes it. CRC Economics

  10. See You! Take Care! CRC Economics

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