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Demand & Supply Curves
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Movements along Demand Curve
Diagram Explanations:Â
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When P of a good decreases from P1 to P2 -> consumers can afford more g&s -> the quantity demanded expands from Q1 to Q2 -> the movement along the demand curve from point A to point B
Movements along Supply Curve
Diagram Explanations:Â
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When P of a good increases from P1 to P2 -> firms are incentivized to supply more of that product with higher profits -> the quantity supplied expands from Q1 to Q2 -> the movement along the supply curve from point A to point B
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