Question

Distinguish between change in quantity demanded and change in demand.

Hint:

Remember: "Price changes Quantity," but "Factors change Demand."

Answer 1

Step 1: Understanding the Concept:
The primary difference lies in the cause of the change. One is caused by the price of the product itself, while the other is caused by external factors.

Step 2: Key Differences Table:
\begin{table}[h] \centering \begin{tabular}{|l|l|l|} \hline Basis & Change in Quantity Demanded & Change in Demand
\hline Cause & Change in own price of the good. & Change in factors other than price.
\hline Effect & Movement along the demand curve. & Shift of the demand curve.
\hline Terms & Extension or Contraction. & Increase or Decrease.
\hline Other factors & These remain constant. & Price of the good remains constant.
\hline \end{tabular} \end{table

Step 3: Illustration:
In "Change in Quantity Demanded," the curve stays in place, but we move to a different point on it. In "Change in Demand," the entire curve moves to a new position (left or right).

Step 4: Final Answer:
Change in Quantity Demanded is a movement due to price; Change in Demand is a shift due to other factors (like income or tastes).