supply and demand Flashcards
1
Q
what are the two types of changes in demand
A
- movenment along the demand curve
- a shift of the entire demand curve
2
Q
what causes a movenemnt along the demand curve
A
a change in price auses a movenemt along the demand curve. when the price rises the quantity demanded decreases and when the price decreases teh quantity demanded increases
3
Q
what causes a shift in the demand curve
A
a change in non-price factor will cuase a shift of the entire demand curve. an increase in demand means the curve will shift to the right ( quantity demanded increases) and a decrease in demand means the curve will shift to the left ( quantitiy demand decreases)
