Question
Distinguish between increase in demand and increase in quantity demanded of a good.
✓
Answer
| S. No. |
Basis
|
Increase in demand
|
Increase in quantity demanded
|
| 1. |
Cause
|
Increase in demand is due to change in factors other than price of the given good e.g. increase in income, favourable change in tastes etc.
|
Increases in quantity demanded is due to fall in the own price of the given commodity.
|
| 2. |
Demand curve
|
Increase in demand leads to "rightward shift” of the demand curve from $DD$' to $D_1D_1$.
|
Increase in quantity demanded leads to “downward movement” along a demand curve from point A to point B.
|
| 3. |
Diagram
|
 |
 |
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$Q_s = 1300 + 3P$
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→| Output (units) | Total Revenue (₹) | Marginal Revenue (₹) | Average Revenue (₹) |
|
$1$
|
$14$
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|
$2$
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$24$
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$3$
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$24$
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$4$
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