1. For economics, the "movements" and "shifts" in relation to the supply and demand curves represent very different market phenomena:
1. Movements
A movement refers to a change along a curve. On the demand curve, a movement
denotes a change in both price and quantity demanded from one point to another
on the curve. The movement implies that the demand relationship remains
consistent. Therefore, a movement along the demand curve will occur when the
price of the good changes and the quantity demanded changes in accordance to
the original demand relationship. In other words, a movement occurs when a
change in the quantity demanded is caused only by a change in price, and vice
versa.
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2.
Like a movement along the demand curve, a movement along the supply curve means
that the supply relationship remains consistent. Therefore, a movement along
the supply curve will occur when the price of the good changes and the quantity
supplied changes in accordance to the original supply relationship. In other
words, a movement occurs when a change in quantity supplied is caused only by a
change in price, and vice versa.
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3. 2. Shifts
A shift in a demand or supply curve occurs when a good's quantity demanded or
supplied changes even though price remains the same. For instance, if the price
for a bottle of beer was $2 and the quantity of beer demanded increased from Q1
to Q2, then there would be a shift in the demand for beer. Shifts in the demand
curve imply that the original demand relationship has changed, meaning that
quantity demand is affected by a factor other than price. A shift in the demand
relationship would occur if, for instance, beer suddenly became the only type
of alcohol available for consumption.
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4.
Conversely, if the price for a bottle of beer was $2 and the quantity supplied
decreased from Q1 to Q2, then there would be a shift in the supply of beer.
Like a shift in the demand curve, a shift in the supply curve implies that the
original supply curve has changed, meaning that the quantity supplied is
effected by a factor other than price. A shift in the supply curve would occur
if, for instance, a natural disaster caused a mass shortage of hops; beer
manufacturers would be forced to supply less beer for the same price.
