Question
Explain the concept of change in j demand.
✓
Answer
Change in demand refers to change in s quantity demanded due to change in other factors of demand and price remains constant.
There are two types of changes in demand. They are : (1) Increase in demand (2) Decrease in demand.(1) Increase in demand : It refers to rise in quantity demanded due to favourable changes in other factors like tastes, income, etc. and price remains constant.
Demand curve shifts to the right hand side of the original demand curve.
In the above diagram, DD is the demand curve which is showing downward movement on the same demand curve from point ‘b’ to point ‘c’ which indicates an expansion of demand.
(2) Decrease in demand : It refers to fall in quantity demanded due to unfavourable changes in other factors like tastes, income, etc. and price remains constant. Demand curve shift to the left hand side of the original demand curve.
In the above diagram DD is the original demand curve. $D_2 D_2$ demand curve indicates, decrease in demand by shifting towards the left hand side of original demand curve from point ‘b’ to point ‘a’.
There are two types of changes in demand. They are : (1) Increase in demand (2) Decrease in demand.(1) Increase in demand : It refers to rise in quantity demanded due to favourable changes in other factors like tastes, income, etc. and price remains constant.
Demand curve shifts to the right hand side of the original demand curve.
In the above diagram, DD is the demand curve which is showing downward movement on the same demand curve from point ‘b’ to point ‘c’ which indicates an expansion of demand.
(2) Decrease in demand : It refers to fall in quantity demanded due to unfavourable changes in other factors like tastes, income, etc. and price remains constant. Demand curve shift to the left hand side of the original demand curve.
In the above diagram DD is the original demand curve. $D_2 D_2$ demand curve indicates, decrease in demand by shifting towards the left hand side of original demand curve from point ‘b’ to point ‘a’.
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