Students buy significantly more ice cream filled cakes after the cake producer announces it is going bankrupt
shift of the demand curve or movement along the demand curve
The scenario you mentioned, where students buy more ice cream filled cakes after the cake producer announces bankruptcy, suggests a shift in the demand curve. This is because a shift in demand reflects a change in consumer preferences or conditions that influence the quantity of a good or service that consumers are willing and able to purchase at each price.
In this case, the announcement of bankruptcy creates a specific condition that influences consumer behavior. It can be assumed that students perceive buying ice cream filled cakes as a limited opportunity since the producer is going out of business. This perception results in a sudden increase in demand for the product, leading to a higher quantity of ice cream filled cakes being bought.
To further clarify, movement along the demand curve occurs when the quantity demanded changes due to a change in price, while keeping other factors constant. However, in the scenario you provided, the change in demand for ice cream filled cakes is not solely caused by a change in price, but rather by a change in consumer behavior resulting from the news of bankruptcy. Therefore, it is indicative of a shift in the demand curve rather than movement along it.