93.6k views
2 votes
Distinguish between change in quantity demanded and change in demand.​

User Carmel
by
8.2k points

1 Answer

3 votes

Final answer:

Demand refers to the overall relationship between price and quantity, while quantity demanded is a specific quantity at a given price.

Changes in factors other than price cause a shift in demand, while changes in price cause a movement along the demand curve.

Step-by-step explanation:

In economics, the term 'demand' refers to the quantity of a product or service that consumers are willing and able to buy at a specific price and within a given period. The demand curve represents the relationship between the price of a product and the quantity demanded.

On the other hand, 'quantity demanded' refers to the specific quantity of a product that consumers are willing and able to buy at a particular price. It is a specific point on the demand curve.

When there is a change in factors other than the price that affect consumer willingness and ability to buy a product, it leads to a shift in the entire demand curve. This is known as a change in demand. For example, if there is an increase in consumer income, there would be an increase in the demand for milk, resulting in a rightward shift of the demand curve.

On the other hand, a change in price causes a movement along the demand curve, known as a change in quantity demanded. Price and quantity demanded have an inverse relationship, meaning that as price decreases, quantity demanded increases, and vice versa.

User Jaekie
by
7.9k points