supply/demand curve shifts

[tarik64]

has any1 watched the schweser economics video? wondering if its worth watching. I'm having some trouble really grasping the supply/demand shifts. Kind of the difference of when a factor actually moved the entire market demand/market supply or whether the movement is just along the curve. Just wondering if anyone has a little simpler explanation or has ever watched a good video or read something other than cfa text or schweser on it that helped them to understand it?

 

[C3Po]

In a very simplistic way, shifts in demand are caused by changes in factors other than price.She you instruct a demand curve one of the caveats is” other factors remiaining constant” These other factors could be price/demand of a competing product, substitutes etc. Movement along the curve is related to changes in price and qty along the same curve. A shift in demand is when for the same price qty demanded increases or decreases due to changes factors that were held constant in the initial assumption. Hope this helps.

 

[mohammad. belaal]

Hypothetically speaking, if you have reserved 10$ for the purchase of apples and at present they are at 1$ then you can have 10 apples. If the price rises from 1$ to 2$ then you would have 5 apples. If price rises from 2$ to 5$ then you’d have 2 apples. This is movement along the curve. As you increase the price the quantity demanded (other things remaining the same) fall.
On the other hand if your income rises and you reserve 20$ for apples then if they are at 1$ then you can have 20 apples. If price rises from 1$ to 2$ then you could have 10 apples and if it rises from 2$ to 5$ then you’d have 4 apples. In this way the demand curve has taken a positive or right shift. At same price/unit you are having more quantity. Income is one variable you can have relations with other variables too.
Law of demand talks about the 1st scenario when other things remaining the same, an increase in price/unit tends to decrease the quantity demanded for a product. Change in quantity demanded means that movement is along the curve and Change in demand means that the curve has shifted.
Same concept can be applied to supply.