Differences Between Movement along and Shift of demand and supply curves,Explain the difference between a movement along demand and supply curves and a shift of demand and supply curves. · What can cause the above situations? Provide an example for each. · Describe how equilibrium is found. · Describe how a shift of the demand or supply curve can affect equilibrium

Differences Between Movement along and Shift of demand and supply curves

In economics, the demand curve is a graphical representation of the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at that price (Begg, 2018). Similarly, the supply curve is a graphical representation of the relationship between the price of a good and the quantity of the good that producers are willing and able to sell at that price (Begg, 2018). A movement along a demand or supply curve occurs when there is a change in the price of a good, but the quantity demanded or supplied remains the same. For example, if the price of a good increases, the quantity demanded may decrease, resulting in a movement along the demand curve (Begg, 2018). On the other hand, if the price of a good decreases, the quantity demanded may increase, also resulting in a movement along the demand curve (Begg, 2018). In contrast, a shift of the demand or supply curve occurs when there is a change in the quantity demanded or supplied at every price, not just a change in price. For example, an increase in consumer income may lead to an increase in the demand for a good at every price, resulting in a shift of the demand curve to the right (Begg, Fischer, and Dornbusch, 2018). Cont…