Explain the difference between change in quantity demanded and ashift in demand. What causes changes...

Explain the difference between change in quantity demanded and a shift in demand. What causes changes in quantity demanded? What causes a shift in demand?

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Expert Solution

Change in Quantity Demanded- When the own price of a good or service change, then the resultant change in the demand of the good or service is known as the change in quantity demanded. It is important to note here that change in quantity demanded happens only due to the change in the own price of the good or service and not due to any other factor which influence the demand for the product. Graphically change in quantity demanded is depicted bye the movement along the demand curve.

Shift in Demand– a shift in demand is different from the change in quantity demanded. A shift in demand happens due to the change in the factors affecting demand other than the own price of the good or service. Hence, change in demand due to a change in in the income of the consumer, change in the taste and preference, change in the price of related goods is known as the shift in demand.

Graphically, a shift in demand is depicted as a shift in the demand curve.

Rahul Sunny answered 1 year ago

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