Movement along the Demand Curve

 

A movement along the demand curve occurs when the only thing that changes is the price of that particular good.

 

 

 

The diagrams referred to in this section are from the Biz/ed Demand and Supply PowerPoint

 

Pay particular attention to Slide 2 and the diagrams on Slide 4 in the presentation

 

The effect of a price change can be illustrated in these diagrams.

 

When the price falls from P1 to P2, the quantity demanded increases from QI to Q2.

 

When the price rises from P1 to P2, the quantity demanded increases from Q1 to Q2.

 

 

Remember: the only thing which has changed is the price of the good. Everything else remains the same.