Change in Demand vs. Change in Quantity Demanded: What’s the Difference?
The main difference between Change in Demand and Change in Quantity Demanded is that the former refers to a shift in the entire demand curve, while the latter represents a movement along the same demand curve.
Before we move to more differences, let’s first understand Change in Demand and Change in Quantity Demanded:
- Change in Demand: Change in Demand refers to the shift in the entire demand curve, either leftward or rightward, due to changes in factors other than the commodity’s price. These factors include consumer preferences, income, population, and government policies.
- Change in Quantity Demanded: Change in Quantity Demanded refers to the movement along the same demand curve due to a change in the commodity’s price. It shows the responsiveness of the quantity demanded to a change in the commodity’s price.
Now, let’s get to Change in Demand vs Change in Quantity Demanded:
Major differences between Change in Demand and Change in Quantity Demanded
| Change in Demand | Change in Quantity Demanded |
|---|---|
| Change in Demand affects the entire demand curve. | Change in Quantity Demanded affects only a particular point on the demand curve. |
| Change in Demand occurs due to factors other than the commodity’s price. | Change in Quantity Demanded occurs due to a change in the commodity’s price. |
| Change in Demand leads to the entire demand curve’s shift either leftward or rightward. | Change in Quantity Demanded does not lead to any shift in the demand curve. |
| Change in Demand can lead to the price and quantity of the commodity moving in the same direction. | Change in Quantity Demanded causes the price and quantity to move in opposite directions. |
| Factors that cause Change in Demand include consumer preferences, income, population, and government policies. | The only determinant for Change in Quantity Demanded is the commodity’s price. |
So, these are the main differences between the entities.
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