Question

Explain the difference between a change in demand and a change in quantity demanded.

b) List four demand shifters and explain the direction in which they shift demand.

Answer 1

Difference between demand and quantity demanded when there is only one factor involved in the change of demand and that is the price then there will be the quantity demanded.

but when more than another factor than just the price are available like the expectation of people, the income of the consumer, taste, and preferences, etc, then there will be a whole change in demand.

when there is a quantity demanded then there is a movement on the demand curve and if there is a whole change in demand curve then there is a shift in the demand curve whether rightwards or leftwards.

Some of the shifters of demand explain below -

1.Income- Income of the consumer rises then demand curve will shift to the right due to the more consumption power of the consumer .

2.Substitutes-if substitutes are available then people will shift the demand to that substitute which has a lower price as compared to other

3.Expectations- expectation is also a factor,say for example if consumer get to know that tomorrow some commodity price will rise then he will buy more commodity now and this will shift the demand curve to the rightward of that commodity.

4.Taste and preferences- if over the time people are disliking some type of good then demand curve of that good will shift to the leftward and vice versa