Th1.2: Movements and Shifts of D curve Flashcards
1
Q
What is a movement along the demand curve caused by?
A
a change in the price of the good
2
Q
What is a shift of the demand curve caused by?
A
a change in any of the factors which affect demand
3
Q
What is a contraction in demand?
A
when the quantity demanded falls due to an increase in price
4
Q
What is an extension in demand?
A
when the quantity demanded rises due to a decrease in price
5
Q
Refer to PP
On graph 4, what is A to C called?
A
an extension in demand
6
Q
Refer to PP
On graph 4, what is A to B called
A
a contraction in demand
