Question

In your own words, please describe the difference between demand and quantity demanded. Also, can you please focus on one product and give three current scenarios in the market for that product that pertain to a change in demand for the product.

Answer 1

Ans ) The demand simply refers to the person's willingness to pay the price for a good.It simply states the quantities that would be purchased at various prices.It gets affected by the factors other than price.Whenever there is change in the demand, the same is reflected through the shift in the demand curve to left or right.

The change in the quantity demanded simply represents the exact quantity of a good demanded by an individual at a particular price.It is the actual amount of goods desired at a certain price.It gets affected by the change in price.

For example, lets take an example of mobile phone:

(i) If the consumers like the feature of a phone, their demand for the same also increases leading to the shift in the demand curve towards right.

(ii) If the consumers find a particular model of a phone less appealing, then their demand for the same decreases leading to the shift in the demand curve towards left.

(iii) The shift in the demand curve also occurs due to the change in the price of substitute or complementary goods.Substitute goods are those goods which can be used in place of each other.Complemetary goods are those goods which are used together.In the case of phones also, we have substitutes.When the price of one phone increases, the demand for another phone decreases which shifts the demand curve.