Please tell me the differences between shifts and movements in demand through illustration.

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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Of course, we cannot provide you with an illustration on this site.  If you will follow the amosweb link below, you can see an animated illustration of a shift in a demand curve.

When we talk about a shift in demand, we are talking about a movement of the demand curve -- it can move either left or right.  The demand curve has shifted when there is a different quantity demanded at the same price.  So a shift in demand is when consumers are willing to buy more or less of some good or service than they were before at the same price.

By contrast, a movement along a demand curve is caused by a change in price.  Here, consumers are willing to buy more or less, but it is at a different price.

 

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