Question
Explain the difference between ‘change in demand’ and ‘change in quantity demanded’
✓
Answer
Differences between change in demand and change in quantity demanded are
| Basis | Change in Demand | Change in quantity Demanded |
| Reason | It is caused by a change in prices of substitutes,change in prices of complementary goods,change in income, etc. other than the own price of the commodity | It is caused by an increase or decrease in the price of the given commodity, keeping other factors constant. |
| Impact on demand curve | It leads to a shift in the demand curve either rightwards (known as increase in demand)or leftwards(known as decrease in demand) | It leads to a movement along the same demand curve either upwards(known as contraction in demand)or downwards(known as expansion in demand) |
| Diagrammatic Presentation | 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. |
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