Differentiate between movement along the demand curve and shift of the demand curve?

Movement along the demand curve refers to a change in quantity demanded due to a change in price, while a shift of the demand curve refers to a change in demand due to factors other than price.

1. Movement along the demand curve: This occurs when there is a change in the quantity demanded of a good or service due to a change in its price, while other factors remain constant. The demand curve itself does not shift, but there is a movement along the existing curve. This movement is represented by a change in the quantity demanded at different price points. For example, if the price of a product decreases, the quantity demanded usually increases, resulting in a movement along the demand curve.

2. Shift of the demand curve: This occurs when there is a change in demand for a good or service due to factors other than price. These factors can include changes in consumer income, tastes and preferences, prices of related goods, population, and expectations. When any of these factors change, the entire demand curve shifts either to the right (increase in demand) or to the left (decrease in demand). This means that at each price point, the quantity demanded is different. For example, if there is an increase in consumer income, the demand for normal goods may increase, causing the demand curve to shift to the right.

In summary, movement along the demand curve is caused by a change in price, while a shift of the demand curve is caused by factors other than price.