Changes in Demand Flashcards
1
Q
what are the two types of changes and how are they caused
A
- movement - caused by change in price
2. shift of curve - caused by change in non price factors
2
Q
expain the movement along the curve
A
a change in the price of goods will lead to a movement along the demand curve
decrease in price causes decrease in quantity demanded
3
Q
explain the shift of the curve
A
changes in non price factors affecting demand will cause a shift in the entire demand curve creating a new curve
