Distinguish between change in quantity demanded and change in demand
Answers
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Change in qty demanded :
- When quantity of a commodity demanded changes due to change in the price of the commodity , keeping other factors constant, it is called change in the quantity demanded.
- It leads to a movement along the demand curve. The movement can be either contraction or expansion.
- It occurs due to an increase in the price or due to a decrease in price.
Change in demand :
- When demand of a commodity changes due to change in factors other than its price, it is called change in demand.
- It leads to a shift in the demand curve. The shift can be either rightward or leftward.
- It occurs due to change in price of supplementary goods or change in technology.
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Explanation:
A change in demand means that the entire demand curve shifts either left or right. ... A change in quantity demanded refers to a movement along the demand curve, which is caused only by a chance in price. In this case, the demand curve doesn't move; rather, we move along the existing demand curve.
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