Difference Between Movement and Shift in Demand Curve

In economics, demand is defined as the quantity of a product or service, that a consumer is ready to buy at various prices, over a period. Demand Curve is a graph, indicating the quantity demanded by the consumer at different prices. The movement in demand curve occurs due to the change in the price of the commodity whereas the shift in demand curve is because of the change in one or more factors other than the price.

The demand curve is downward sloping from left to right, depicting an inverse relationship between the price of the product and quantity demanded.

Most of the economics student, find it difficult to understand the difference between movement and shift in the demand curve, so take a look at the article, and resolve all your confusions right away.

Content: Movement in Demand Curve Vs Shift in Demand Curve

1. Comparison Chart
2. Definition
3. Key Differences
4. Figure
5. Video
6. Conclusion

Comparison Chart

Basis for Comparison	Movement in Demand Curve	Shift in Demand Curve
Meaning	Movement in the demand curve is when the commodity experience change in both the quantity demanded and price, causing the curve to move in a specific direction.	The shift in the demand curve is when, the price of the commodity remains constant, but there is a change in quantity demanded due to some other factors, causing the curve to shift to a particular side.
Curve
What is it?	Change along the curve.	Change in the position of the curve.
Determinant	Price	Non-price
Indicates	Change in Quantity Demanded	Change in Demand
Result	Demand Curve will move upward or downward.	Demand Curve will shift rightward or leftward.

Definition of Movement in Demand Curve

Movement along the demand curve depicts the change in both the factors i.e. the price and quantity demanded, from one point to another. Other things remain unchanged when there is a change in the quantity demanded due to the change in the price of the product or service, results in the movement of the demand curve. The movement along the curve can be in any of the two directions:

• Upward Movement: Indicates contraction of demand, in essence, a fall in demand is observed due to price rise.
• Downward Movement: It shows expansion in demand, i.e. demand for the product or service goes up because of the fall in prices.

Hence, more quantity of a good is demanded at low prices, while when the prices are high, the demand tends to decrease.

Definition of Shift in Demand Curve

A shift in the demand curve displays changes in demand at each possible price, owing to change in one or more non-price determinants such as the price of related goods, income, taste & preferences and expectations of the consumer. Whenever there is a shift in the demand curve, there is a shift in the equilibrium point also. The demand curve shifts in any of the two sides:

• Rightward Shift: It represents an increase in demand, due to the favourable change in non-price variables, at the same price.
• Leftward Shift: This is an indicator of a decrease in demand when the price remains constant but owing to unfavourable changes in determinants other than price.

Video: Movement Vs Shift in Demand Curve

Figure

Movement in Demand Curve

Upward movement of the curve from A to C represents a contraction of demand due to the increase in the price of the commodity from P to P2. Downward movement of the curve from A to B denotes the expansion of demand due to the reduction in prices of the commodity from P to P1.

Shift in Demand Curve

Price remains unchanged, the rightward shift of the demand curve from D to D1 is termed as an increase in demand, as demand goes up from Q to Q1. The leftward shift of the demand curve from D to D2 is known as a decrease in demand, as demand goes down from Q to Q2.

Conclusion

Therefore, with the overall discussion, you might have understood, that a movement and shift in the demand curve are two different changes. Movement in the curve is caused by the variables present on the axis, i.e. price and quantity demanded. On the flip side, a shift in the curve is because of the factors which are other than those present on the axis, such as competitors price, taste, expectations and so on.