Answer to Question #173309 in Microeconomics for Zarpash

Question

Explain the following cases through graph.

(a) Does a change in consumers’ preferences lead to a movement along the demand curve or a shift in the demand curve? 

(b) Does a change in price lead to a movement along the demand curve or a shift in the demand curve?

(c) Does a change in price of raw material lead to a movement along the supply curve or a shift in the supply curve? 

(d) Does a change in price lead to a movement along the supply curve or a shift in the supply curve?

Answer 1

a)

b)

c)

d)