2. Influence on demand curve
Many things influence demand, and these influences may be
recognised by looking at variations in the demand curve.
• Change in demand
• Change in the quantity demanded
• Movement along the demand curve is caused by a change in
the commodity’s price, whereas the shift is caused by a change
in one or more factors other than the price.
3. Movements along the demand curve
• The change in both factors, namely the price and quantity
demanded, from one point to the next is depicted by movement
along the demand curve.
• There are two forms of movement in a demand curve: extension
and contraction.
4. • When the demand for a commodity rises due to a decrease in
price, the demand curve extends.
• If the quantity changes due to the fluctuation in the price of the
product or service, the demand curve moves.
• Upward Movement indicates a decrease in demand, i.e., a
decrease in demand due to a price increase.
• Downward Movement indicates an increase in demand, i.e.,
demand for the product or service rises as prices decrease.
5. Shifts in demand curve
• A shift in the demand curve shows changes in demand at each
potential price due to changes in one or more non-price factors
like the price of comparable commodities, income, taste and
preferences, and consumer expectations
• Rightward Shift denotes a rise in demand at the same price
due to a favourable shift in non-price variables.
• Leftward Shift: When the price remains constant, but other
factors move unfavourably, this indicates a drop in demand.
