You met the two pictures in 2.1.2. Each one has its own words, and the exam checks them.
Two pictures, two names
The good's own price changes
The price of bubble tea rises, so students want less of it.
Anything else changes
Students earn more, so they want more bubble tea at every price.
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Remember it as: Price moves you along: quantity demanded. Everything else moves the line: demand.
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Use the right word: it tells the reader which picture you mean.
Wrong or right?
"The price fell, so demand rose"
A price change never shifts the curve.
"The price fell, so quantity demanded rose"
A movement along the curve.
"Incomes rose, so quantity demanded rose"
Income shifts the whole curve.
"Incomes rose, so demand rose"
A shift to the right.
The points to remember
- Movement along the curve: say quantity demanded.
- Shift of the curve: say demand.
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Answer exam-style questions and get AI feedback that shows you exactly what examiners want to see in a full-marks response.
Why does a rise in demand push the price up, while a rise in the price cuts quantity demanded? Supply, what sellers offer at each price, shows why.
Scenario 1: demand rises
- Students start weekend jobs and earn more.
- A shortage appears, so the price is bid up.
Our example (made-up numbers)
| Price | €6 | €7 |
|---|---|---|
| Buyers want before (D1) | 40 | 30 |
| Buyers want after (D2) | 60 | 50 |
| Sellers offer (S) | 40 | 50 |
Animated graph
Watch the graph build step by step in study mode.
Scenario 2: the price rises
- A poor tea harvest raises the café's costs: supply falls and the price rises.
- Demand does not move: quantity demanded falls along it.
Our example (made-up numbers)
| Price | €6 | €7 |
|---|---|---|
| Buyers want (D) | 40 | 30 |
| Sellers offer before (S1) | 40 | 50 |
| Sellers offer after (S2) | 20 | 30 |
Animated graph
Watch the graph build step by step in study mode.
Paper 1 asked this in November 2024, as part (a) for 10 marks.
Explain why an increase in the demand for a good would normally lead to an increase in its price, while an increase in the price of a good would normally lead to less of it being demanded.
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Animated graph
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What the diagrams must show
- Two diagrams, each with P and Q axes.
- Diagram 1: S, D1 → D2 to the right, P1 → P2 and Q1 → Q2.
- Diagram 2: D, S1 → S2 to the left, the price rising and Q1 → Q2 along D.
- Say shortage in half 1 and quantity demanded in half 2.
How the 10 marks are given
| Marks | What your answer needs |
|---|---|
| 9–10 | Both parts fully explained, terms used correctly all the way through, the diagram included and fully explained |
| 7–8 | Both parts explained, terms mostly right, the diagram included and explained |
| 5–6 | Partly explained, some terms, the diagram included |
| 6 at most | Only one of the two parts answered, however good it is |