a) demand curves
a) the distinction between movements along a demand curve and shifts of a demand curve
b) the factors that may cause a shift in the demand curve (the conditions of demand)
demand = the value of a good or service that consumers are willing and able to purchase at a given price and time
on a demand curve
y-axis = price
x-axis = quantity demanded
demand curve = constant and negative gradient
consumers would purchase less goods or services at higher prices in order to maximise their utility
a change in only the price
causes a change in the quantity demanded
and causes the position to move along the demand curve
if the price decreases
the quantity demanded increases
so there will be an extension in the quantity demanded
if the price increases
the quantity demanded decreases
so there will be a contraction in the quantity demanded
the conditions of demand = the factors other than price that change the demand
a change in the conditions of demand
causes the demand curve to shift left if the demand decreases or shift right if the demand increases
and does not change the gradient of the demand curve
examples of some conditions of demand
a change in the population size
a change in real income per capita
a change in the price of substitute or complementary goods