What is the difference between a shift in the demand curve and a movement along the demand curve?
A) A shift is a reaction to a movement along the demand curve.
B) A shift implies a change in the whole demand curve; a movement does not.
C) A shift conveys a change in the opportunity cost; a movement does not.
D) A shift creates a new equilibrium price; a movement creates a new equilibrium quantity.

Question

Quizplus · Accepted Answer

A shift in the demand curve happens when a non-price factor affecting demand changes (such as income, taste or availability of substitute goods) leading to a new demand curve. The whole curve shifts to the right or left, indicating a change in the quantity demanded at every price point. A movement along the demand curve happens when a change in the price of the good itself alters the quantity demanded, but the demand curve remains the same. It represents a movement from one point to another on the same demand curve.

What Is the Difference Between a Shift in the Demand