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.
You might also like to view...
The unemployment rate generally ________ during recessions and generally ________ during expansions
A) increases; increases B) increases; decreases C) decreases; decreases D) decreases; increases E) increases; does not change
How does political corruption affect society?
What will be an ideal response?