Question

1. movements along versus shifts of demand curves

consider the market demand for streaming subscriptions.

complete the following table by indicating whether an event will cause a movement along the demand curve for streaming subscriptions or a shift of the demand curve for streaming subscriptions, holding all else constant.

event | movement along | shift
--- | --- | ---
a decrease in income of consumers | ○ | ○
a change in the expectations of consumers about their future income | ○ | ○
an increase in the price of streaming subscriptions | ○ | ○

Explanation:

• A decrease in consumer income is a non-price determinant of demand (income is a factor affecting overall demand, not the price of the good itself), so it shifts the demand curve.
• Changes in consumer expectations about future income are also non-price determinants, as they alter consumers' willingness to spend at all price levels, causing a shift in the demand curve.
• An increase in the price of streaming subscriptions directly affects the price of the good, leading to a change in quantity demanded, which is a movement along the existing demand curve.

Answer:

Event	Movement Along	Shift
A change in the expectations of consumers about their future income	☐	☑
An increase in the price of streaming subscriptions	☑	☐