Essay by Madlin Vrdoljak:

What is the difference between a move along the demand curve and a shift in the curve
altogether? What about the supply curve?

The difference between a move along the demand curve and a shift in the curve
is that ​a movement occurs when a change in quantity supplied is caused only by a
change in price, and vice versa. A shift in a demand or supply curve occurs when a
determinant changes.
The simplest way to understand the difference between this is to understand the
two rules: ¨You got a movement along the demand or supply curve, when all factors
affecting demand and supply are constant and only the Price changes.¨ and ¨You get a
shift of the demand or supply curve, when any one of the many determinants change.
Movement in the demand curve is when the commodity experience change in
both the quantity demanded and price, causing the curve to move in a specific direction.
Besides that, the shift in the demand curve is when, the price of the commodity remains
constant, but there is a change in quantity demanded due to some other factors,
causing the curve to shift to a particular side.
A move along the demand curve happens when there is a change in one of the
determinants of demand. The different determinants of demand are change in
consumer tastes/ preferences, change in consumer incomes, change in the size or
composition of the population, change in the price of a substitute good, change in the
price of a complementary good and change in consumers price expectations. A shift in
the curve of supply happens when there is a change of the determinants of supply.
They are: The technology the product used to make, the cost of resources, Producers
price expectations, producers price expectations of cost of resources and numbers of
sellers in the market.
In Conclusion, the difference between a move along the demand curve and a
shift in the curve of supply is that they have different determinants and they shift in
different directions and use different lines.
Essay 2

How do determinants of demand and determinants of supply affect decision making?

(Give examples of some determinants of demand and explain how they work / Give
examples of some determinants of supply and explain how they work)

The determinants of demand and determinants of supply affect the decisions of

people because people act like how it is the best for them or their company.
So, one of the different determinants of demand is that the taste or preferences
of the people changes. An example for that is, imagine you would sell chicken but then,
someone would say that your chicken has a issue that caused heart attacks, so less
people would buy it. The other determinants are Income of the people, population,
substitute good, complementary good and price expectations. So when less or more
people are around a product, how many other products are there and more.
The different determinants of supply are: the technology the product used to
make, the cost of resources, Producers price expectations, producers price
expectations of cost of resources and numbers of sellers in the market. An example for
the technology they used to make the project is, imagine you would sell phones and
there would be a new technology they produced it two times faster. If you would
produce more products, you could sell more too.
Businesses decides what the best is for them and the determinants impact this
decisions. Buyer's does it too but have different factors. One of them impact demand
and the other one impact supply.
In Conclusion, people almost always choose the best for them, so they look at
this factors and make a decision.