Understanding Demand Curve Shifts

This lecture focuses on understanding how demand curves shift. It begins with a review of the previous lecture on deriving the demand curve using the law of demand and the ceteris paribus assumption. The lecture then explores the concept of demand curve shifts, distinguishing between outward and inward shifts, and their implications on the quantity demanded at various prices. The lecture concludes by emphasizing the importance of understanding these shifts and previews the next topic on why these shifts occur.

What is the primary focus of this lecture?

• Market equilibrium

• Supply curve analysis

• Demand curve shifts

• Price elasticity

What assumption is made when deriving the demand curve?

• All prices are constant

• Ceteris paribus

• Supply is fixed

• Demand is elastic

What happens to the demand curve when the ceteris paribus assumption is removed?

• It becomes a straight line

• It shifts

• It becomes upward sloping

• It remains unchanged

What does an outward shift in the demand curve indicate?

• More of the good is demanded at each price

• Less of the good is demanded at each price

• The price of the good has decreased

• The supply curve has shifted

How are outward and inward shifts of the demand curve labeled?

• With colors

• With arrows

• With plus and minus signs

• With letters

What causes movements along the demand curve?

• Shifts in the supply curve

• Changes in other factors

• Changes in price

• Changes in consumer preferences

What is the main difference between movements along the demand curve and shifts in the demand curve?

• Movements are due to price changes; shifts are due to other factors

• Movements are due to supply changes; shifts are due to price changes

• Movements are temporary; shifts are permanent

• Movements are due to consumer preferences; shifts are due to price changes