Does a change in consumers tastes lead to a movement along t

Does a change in consumers\' tastes lead to a movement along the demand curve or to a shift in the demand curve? Does a change in price lead to a movement along the demand curve or to a shift in the demand curve? Explain your answers 3.

Solution

Change in demand due to Change in consumer taste keeping other factor constant(especially price) is known as change in quantity demand and this will shift the demand curve paralelly.

And change in demand due to change in price keeping other factor constant is known as change in quantity demanded which is also known as expansion or contraction and there will be movement along the curve and thus there will be no shift in demand curve.

Thus when demand chnages due to change in its own price then movement along the curve, otherwise shift.