Distinguish between change in demand and change in quantity deman…

Question

Distinguish between change in demand and change in quantity demanded.

✓

Answer

Differences between change in demand and change in quantity demanded are:

S. No.	Basis	Change in demand	Change in quantity demanded
1.	Factors	This is caused by change in determinants, other than own price of the commodity.	This is caused by change in own price of the commodity, other factors remaining constant.
2.	Effect	This happens when at the same price, more or less is being demanded.	This happens when at a lower price, more is being demanded or at a higher price, less is being demanded.
3.	Change in curve	Diagrammatically, this is shown as a forward or backward shift in demand curve.	Diagrammatically, this is shown as a downward or an upward movement on the same demand curve.
4.	Graph

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		(₹ crore)
(i)	Gross National Disposable Income	600
(ii)	Net current transfers to abroad	(–) 20
(iii)	Consumption of fixed capital	60
(iv)	Current transfers from government	30
(v)	Indirect tax	100
(vi)	Income accruing to government	80
(vii)	Subsidies	10
(viii)	Net factor income to abroad	(–) 10
(ix)	National debt interest	40
(x)	Personal tax	150

		(Rs. Crores)
	Personal Tax	80
	Private final consumption expenditure	600
	Undistributed profits	30
	Private income	650
	Government final consumption expenditure	100
	Corporate Tax	50
	Net domestic fixed capital formation	70
	Net indirect tax	60
	Depreciation	14
	Change in stocks	(-) 10
	Net imports	20
	Net factor income to abroad	10

	(Rs. in crores)
Profits	500
Exports	40
Compensation of employees	1,500
Gross national product at factor cost	2,800
Net current transfers from rest of the world	90
Rent	300
Interest	400
Factor income to abroad	120
Net indirect taxes	250
Net domestic capital formation	650
Gross fixed capital formation	700
Change in stock	50