DIFFERENCE BETWEEN CHANGES IN
DEMAND AND CHANGES IN QUANTITY DEMANDED
Change in Quantity demanded: A demand
curve is the graphic representation of the law of demand. Movement alo
ng a demand curve is caused b y a change in the own price of the commodity.
Such as change is called extension and contraction of demand. This means
movement on the demand curve resulting in extension of demand. Demand contracts
as price of good increases. This movement on a demand curve is known as change
in quantity demanded. This is be explained with the help of a diagram
X axis
-------àQuantity of X
Y
axis---------àprice of X
DD
------------àdemand curve
Explanation:
The figure shows that as the price increases the demand
decreases & as the price decreases the demand for the commodity increases.
Change in demand: A shift
of the demand curve is brought about b y change in factors other thanthe?own'priceeg.Itchangesinfactorlikeincomesoftheconsumerpricesofsubstitute
products,
percentage of women going out to work etc, this is known as change in demand.
This is explained with the help of a diagram.
X axis
-------àQuantity of X
Y
axis---------àprice of X
DD
------------àdemand curve
DD1
------------àShift in Demand curve
Explanation:
The purchasing power of the consumer increases at each given
price he starts buying more of the co mmodity. This tendency of the consumer
leads to shifts in this demand curve. S imilar results will emerge if other
determinants like price of related goods, tastes, etc, change. All the??other determinants?aretherefore, called shift factors, which lead to change
in demand.
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