Differentiate between a change in demand and a change in quantity demanded
What will be an ideal response?
A change in demand refers to the change in the quantity of a good purchased due to changes in any factors other than price. These factors may include a change in income, tastes and preferences, future expectations, or a change in the number and scale of buyers. A change in demand is graphically represented by a shift of the demand curve. On the other hand, a change in quantity demanded refers to a change in the quantity of a good purchased due to a change in the good's price, other things remaining the same. Graphically, a change in quantity demanded is represented by a movement along the same demand curve.
You might also like to view...
The dollar demand curve in the foreign exchange market is:
A) vertical. B) downward sloping. C) upward sloping. D) horizontal.
A perfectly competitive firm will maximize profit when the quantity produced is such that the
A) firm's total revenue is equal to total cost. B) firm's marginal revenue is equal to the price. C) firm's marginal revenue is equal to its marginal cost. D) price exceeds the firm's marginal cost by as much as possible. E) firm's marginal revenue exceeds its marginal cost by the maximum amount possible.