Answer to Question #254559 in Economics for Doris

Question

1. Examine and illustrate the difference between a change in the quantity demanded and a shift in the demand curve. 2. Examine and illustrate the difference between a change in the quantity supplied and a shift in the supply curve.

Answer 1

Changes in demand, and, consequently, a shift in its curve occur as a result of the impact of non-price factors.

Changes in consumer income.

Change in prices for substitute goods.

Changes in prices for complementary products.

Changing consumer preferences and expectations.

Change in the number of consumers.

SUPPLY CURVE MOTION - sellers' reaction to changes in non-price factors; reflects a change in the proposal (nature of the proposal). A change in supply is a change in the volume of goods that producers want and can sell; depicted by the shift of the entire supply curve.

A shift in the supply curve to the right means an expansion of the supply of goods, a shift in the supply curve to the left means a reduction in the supply of goods.