Distinguish between "a change in demand" and "a change in quantity demanded." What are the causes of each type of change and how do we illustrate them graphically?
What will be an ideal response?
A "change in demand" refers to a shift of the entire demand curve. It is caused by a change in a determinant of demand other than the price of the good in question. A change in quantity demanded refers to a movement along the demand curve for a good. It is caused by a change in the price of the good in question.
Economics
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Most economists believe that biases cause changes in the CPI to overstate the inflation rate by ________ percentage points
A) 0.1 to 0.2 B) 0.2 to 2.0 C) 0.4 D) 0.5 to 1.0 E) 1.0 to 3.0
Economics
The demand curve facing a typical firm in a perfectly competitive market is horizontal
a. True b. False
Economics