Distinguish between “a change in demand” and “a change in quantity demanded.” What are the causes of each type of change and how do we illustrate them graphically?
What will be an ideal response?
ANSWER
A “change in demand” refers to a shift of the entire demand curve. It is caused by a change in a determinant of demand other than the price of the good in question. A change in quantity demanded refers to a movement along the demand curve for a good. It is caused by a change in the price of the good in question.
Place an order in 3 easy steps. Takes less than 5 mins.