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...