Distinguish between a change in demand and a change in quantity demanded
What will be an ideal response?
A change in quantity demanded is caused by a change in the price of the good. It is a movement along the demand curve, so that an increase in price leads to a decrease in quantity demanded. A change in demand refers to a shift of the demand curve. The amount demanded changes at every price. Changes in income, population, prices of related goods, tastes and preferences, and expectations about the future cause the demand curve to shift either to the right or to the left.
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Refer to Figure 6-1. A perfectly inelastic demand curve is shown in
A) Panel A. B) Panel B. C) Panel C. D) Panel D.
The most recent data indicates households in the top fifth of the income distribution earn more than ten times as much income as those in the bottom fifth
a. True b. False