What's the difference between movements along and shifts in the demand curve?

(the answer to this question would be assissted by the use of diagrams) Movements along the demand curve are caused by changes in price. A change in price will move to a new point on the demand curve. For example, an increase in price will reduce demand (therefore causing a contraction in demand to the new price point). The reverse of this with an increase in demand due to a decrease in price will cause an extension in demand. Shifts in the demand curve are caused by increases in demand at every price level. And is shown by drawing a whole new demand curve. This is caused by changes in the underlying components affecting demand. For example, changes in incomes. If incomes increase people are able to afford more of the product at every price level and therefore the demand curve will shift outwards.

Answered by Sarah L. Economics tutor

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