Movement Along A Demand Curve
There is movement along a demand curve when a change in price causes the quantity demanded to change. It is important to distinguish between movement along a demand curve, and a shift in a demand curve. Movements along a demand curve happen only when the price of the good changes. When a non-price determinant of demand changes the curve shifts. These "other variables" are part of the demand function. They are "merely lumped into intercept term of a simple linear demand function." Thus a change in a non-price determinant of demand is reflected in a change in the x-intercept causing the curve to shift along the x axis.
Read more about this topic: Demand Curve
Famous quotes containing the words movement, demand and/or curve:
“The director is simply the audience. So the terrible burden of the director is to take the place of that yawning vacuum, to be the audience and to select from what happens during the day which movement shall be a disaster and which a gala night. His job is to preside over accidents.”
—Orson Welles (19151984)
“The health of the eye seems to demand a horizon. We are never tired, so long as we can see far enough.”
—Ralph Waldo Emerson (18031882)
“The years-heired feature that can
In curve and voice and eye
Despise the human span
Of durancethat is I;
The eternal thing in man,
That heeds no call to die.”
—Thomas Hardy (18401928)