MOVEMENT ALONG A DEMAND CURVE AND SHIFT IN DEMAND CURVE

Movements along a Demand Curve
Movements along a demand curve refer to extension and contraction of demand. These are caused by change in own price of the commodity. 
Extension of Demand (Downward movement along a demand curve) 
Extension of demand is a situation when quantity demanded increases in response to a fall in own price of the commodity. 
Contraction of Demand (Upward movement along a demand curve) 
Contraction of demand is a situation when quantity demanded decreases in response to a rise in own price of the commodity. 

Shifts in Demand Curve
Shifts in demand curve include (1) forward shift, and (2) Backward shift. 
Forward Shift in Demand Curve - Increase in Demand
Forward shift in demand curve refers to a situation when quantity demanded of a commodity increases due to other than price factors of the commodity. 

Causes of Increase in Demand
Important causes of increase in demand are as follows: 
(1) When income of the consumer increases. 
(2) When price of substitute good increases. 
(3) When price of complementary good falls. 
(4) When taste/preference of the consumer 
      shifts in favour of the commodity (due to 
      change in fashion or climate). 
(5) When availability of the commodity is 
      expected to reduce in the near future. 
Backward Shift in Demand Curve- Decrease in Demand
Backward shift in demand curve refers to a situation when quantity demanded of a commodity decreases due to other than price factors of the commodity. 

Causes of Decrease in Demand
Important causes of decrease in demand are as follows: 
(1) When income of the consumer falls. 
(2) When price of substitute goods decreases. 
(3) When price of the complementary goods 
      increases. 
(4) When taste/preference of the consumer 
      shifts against the commodity (due to
      change in fashion or climate). 
(5) When availability of the commodity is 
      expected to rise in the near future. 

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