What is the difference between a change in demand and a change in the quantity demanded? The terminology can be confusing — but we’ll provide some clarity in this
What is the difference between a change in demand and a change in the quantity demanded? The terminology can be confusing — but we’ll provide some clarity in this video. In short, a change in demand refers to a shift in the demand curve — caused by a number of factors such as income, population, etc. A change in quantity demanded refers to a movement along a fixed demand curve — caused by a change in price.
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The demand curve shows what is the quantity demanded at any given price. It says that the lower the price of some good (as long as people still consider that thing “good” overall) the greater the quantity demanded. The cheaper something is, the more I want it. The more expensive it gets, the less of it shall I buy. We know this is true in two ways. One is introspection. Reflect and you will see that this is true for you too! The other is by adopting an evolutionary perspective. Imagine Jimmy B was different than everyone else. He is a “mutant”, has a different genetic baggage than others. The more expensive would a good be, the more of it will he buy. Jimmy will soon run out of resources. But since Jimmy is in competition for resources with other men, Jimmy will have a lower chance than others to find a partner and pass his genes - make children that are like himself. Jimmy B dies without ancestors. Sometimes mutants appear but they don't last. In the long run we all behave like the demand curve says we do.
holding the cost of a product x1 constant and change that of the other product x2, explain the change in price, substitute and income using diagrams