The Impact of Price Increase on Consumer Behavior

The Concept of Movement Along the Demand Curve

Movement along the demand curve refers to a change in quantity demanded caused by a change in the price of a product, while other factors remain constant. In this case, the price of pork chops rose, influencing the individual to buy fewer pork chops than originally planned.

Understanding the Law of Demand

The law of demand states that there is an inverse relationship between the price of a product and the quantity demanded by consumers. When the price increases, the quantity demanded tends to decrease, and vice versa. This economic principle helps explain why the individual bought fewer pork chops in response to the higher price.

Difference Between Movement Along the Demand Curve and Shift in Demand Curve

It's important to differentiate between movement along the demand curve and a shift in the demand curve. A movement occurs when there is a change in quantity demanded due to a change in price, keeping other factors constant. On the other hand, a shift happens when factors other than price, such as changes in income or preferences, impact the overall demand for the product.

In the scenario where the price of pork chops rose, leading to the individual buying only two instead of four, it exemplifies a movement along the demand curve. The decision was solely influenced by the price increase, without external factors altering the demand for pork chops.