CAIE A-Level Economics 2.1.7 Shifts Versus Movements

Practise distinguishing own-price movements along demand or supply from whole-curve shifts caused by non-price determinants and representing both changes accurately on diagrams.

Exam points

identify a change in the good's own price as a movement along its existing curve
identify income, tastes, related prices or production costs as causes of a curve shift
draw movement and shift diagrams with the unchanged curve, new curve and directional arrows labelled

[Maximum number: 1]

Market demand curves normally slope downwards. They may also shift from $\mathrm{D}_{1}$ to either $\mathrm{D}_{2}$ or $\mathrm{D}_{3}$ .

Figure for Question 2.1.7—Shifts vs movements question 1 — CAIE A-Level Economics AS

What would cause a movement along $D_{1}$ for good X and not a shift to either $D_{2}$ or $D_{3}$ ?

advertising of good X increases sales

consumer incomes rise

the price of good X falls

the prices of other goods fall

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2.1.7—Shifts vs movements question 1