With the help of appropriate diagrams, write relevant points of distinction between movement along a demand curve and shift of the demand curve.
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Solution
Movements
along demand curve happens because of changes in quantity demanded.
Extension of demand and contraction of demand take place due to the
change in price of the commodity. Extension of demand caused by decrease
in own price of the commodity and contraction of demand caused by
increase in own price of the commodity.
Shifts
in the demand curve happens due to changes in demand cased by change in
factors other than own price of the commodity. Increase in demand and
decrease in demand happen because of shifts in the demand curve.