16. It is important to distinguish between movements along demand and supply curves and shifts of demand

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16. It is important to distinguish between movements along demand and supply curves and shifts of demand and supply curves. The demand curve shows the relationship between price and quantity demanded. The supply curve shows the relationship between price and quantity supplied. A change in price is a movement along the curve. Changes in tastes, income, wealth, expectations, or prices of other goods and services cause demand curves to shift; changes in costs, input prices, technology, or prices of related goods and services cause supply curves to shift

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Principles Of Microeconomics

ISBN: 9780691150093

13th Global Edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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