Answer to Question #284791 in Microeconomics for Fazi

Question

If the price of Pak Suzuki company Alto car decreases from Rs 1,700,000 to Rs 1,200,000, keeping other factors constant, it would be termed as movement along the demand curve or shift in the demand curve? Elaborate it graphically?

Answer 1

The shift or shift of the demand curve occurs solely as a result of the impact of non-price factors. If only the price is subject to change, then the quantity of demand (Q) changes, and not the demand itself.

Оn the chart:

P1=1 700 000

P2=1 200 000