Changes in Quantity

Demanded and
Movements Along the
Demand Curve
PRESENTED BY: KATHLYN SAN JUAN
INTRODUCTION
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 of time. 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 commodities.
What Is Quantity Demanded?
Quantity demanded is a term used in
economics to describe the total amount
of a good or service that consumers
demand over a given interval of time. It
depends on the price of a good or service
in a marketplace, regardless of whether
that market is in equilibrium.
Change in Quantity Demanded
A change in
quantity demanded refers
to a change in the specific quantity of a
product that buyers are willing and able
to buy. This change in quantity
demanded is caused by a change in the
price.
Movement in Demand Curve
Movement along the demand curve
depicts the change in both the factors, 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.
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.
CETERIS PARIBUS ASSUMPTIONS
Ceteris paribus is a Latin phrase that generally
means "all other things being equal."
In economics, it acts as a shorthand indication of the
effect one economic variable has on another,
provided all other variables remain the same.
It is based on the assumption that all other
conditions and variables that might affect the
relationship between two independent variables will
remain constant while studying their relationship.
REFERENCES
https://www.investopedia.com/terms/q/quantitydemande
d.asp#:~:text=A%20change%20in%20quantity%20demande
d,a%20change%20in%20the%20price.
https://keydifferences.com/difference-between-
movement-and-shift-in-demand-
curve.html#:~:text=Demand%20Curve%20is%20a%20graph,
factors%20other%20than%20the%20price.
https://www.investopedia.com/terms/c/ceterisparibus.asp
https://wikieducator.org/Introduction_to_principles_of_mic
roeconomics/Ceteris_paribus