Introduction

In this section, we make an important distinction between a change in demand, which is a shift of the demand curve, and a change in quantity demanded, which is a movement along the demand curve.

After you have worked through this section of the learning unit, you should be able to explain the following in words and with the aid of demand curves:

  • a shift of the demand curve
  • a movement along a demand curve
  • the impact of a change in the price on the demand curve
  • the impact of a change in non-price factors on demand
  • the difference between a change in demand and a change in quantity demanded

Will an increase in price cause a decrease in demand or a decrease in quantity demanded?



While a decrease in quantity demanded sounds the same as a decrease in demand, there is an important difference, as you will soon see.

Let us recap on the shape (slope) and position (shifts) of the demand curve.

You must be able to distinguish between the following:

  • a change in quantity demanded, which is a movement along the demand curve and
  • a change in demand, which is a shift of the demand curve

Watch the following video about the change in demand:

In the previous sections, we made a distinction between price and non-price factors. It is because of this distinction that there is a difference between a change in quantity demanded and a change in demand.

We deal with a change in quantity demanded first.