1) What are the factors contributing to movements along different points on the same demand curve, and the factors contributing to the demand curve shifting to the right or to the left of its original position

Demand curves are a graphical representation of the responsiveness of changes of demand about prices. Movement in demand curves depicts the changes in the quantity demanded due to changes in prices of the commodity. As thus the factors contributing to the movement are

• Increase of the prices.
• Decrease in prices.

The demand curve can shift to the left or right from the original position depending on the change. The reason behind the shift include

• Changes in the income levels. A rise and a fall of income shifts the curve to the right and left respectively.
• Price of related goods and services. An increase and decrease in the price of substitutes cause of shift to the right and left respectively.
• Changes in taste and preferences. When customers tend to prefer a commodity the demand increases shifting the curve to the right, and the contrary happens.

Market failure is a situation characterized by the inefficient distribution of various commodities and services in the market. The major cause includes third parties in the market leading to the inappropriate allocation of resources. Regulation on the price ceiling and price floors is yet another cause. The situation has social consequences in that there is a rise of macroeconomic issues such as unemployment leading to poor living standards.