Monday, June 16, 2014

DIFFERENCES BETWEEN CHANGE IN DEMAND AND CHANGE IN QUANTITY DEMANDED

CHANGE IN DEMAND A change in demand is a change in quantity a consumer is demanding which does not necessarily come about by changing price. This means that the quantity change without a price change. This change in demand is due to other factors that affect demand other than price of the commodity.
CHARACTERISTICS ¤ A change in demand is caused by a factor that affect demand except price e.g. Income, change in fashion e.t.c ¤ A change in demand is express as a shift from one demand curve to another. ¤ A change in demand does not necessarily obey the law of demand. ¤ A change in demand is a complete behavioural change in the consumer towards the commodity. CHANGE IN QUANTITY DEMANDED A change in quantity demanded is the change in the amount that is demanded of a commodity by a consumer due to a change in the price of the commodity. CHARACTERISTICS ¤ A change in quantity demanded is caused by a change in the price of the commodity alone. ¤ A change in quantity demanded is express as a shift on a single demand curve. ¤ A change in quantity demanded obey the law of demand. ¤ A change in quantity demanded does not indicate a behavioural change in the consumer rather only a reaction to a change in price.

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