What is the difference, (in Economics) in a Demand slide and a Demand shift. I get that the connection with price, up or down influences demand, but not clear on other varibles. Newly discovered health benefits of a product for example, increases demand, creating movement. But isn’t this much the same movement that a decrease in price would create?

What is the difference, (in Economics) in a Demand slide and a Demand shift. I get that the connection with price, up or down influences demand, but not clear on other varibles. Newly discovered health benefits of a product for example, increases demand, creating movement. But isn’t this much the same movement that a decrease in price would create?

 

 

Answer:

When a good’s own price changes, there is a slide (movement) along demand curve. But when other determinants of demand, except the good’s own price, changes, there is a shift in demand curve.

So, if price of a good increases (decreases), its quantity demanded decreases (increases) and there is an upward (downward) movement along demand curve.

But for example, if a good’s health benefits increase, consumers will demand more of that good at every given price. There will be a rightward shift in demand curve. Note here, discovery of a good’s health benefits is a non-price determinant of its demand, so there will be a demand curve shift and not a movement which you have written.

Asked on February 15, 2018 in economics.
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