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3. Change in Demand vs Change in Quantity Demanded
  A. Change in Demand
 

A change in demand of a good means a change of the whole purchase plan. It is caused by factors other than the change in the price of the good.

Graphically, a change in demand involves a shift of the demand curve. This means greater/smaller quantiies demanded than before at the original prices.

 
  Increase in demand Decrease in demand
 
Increase in demand
Decrease in demand
 
  B. Change in quantity demanded
 

A change in quantity demanded of a good refers to a change of quantity demanded as a result of price change of the good.

Graphically, the demand curve remains the same. The change is only shown by a "movement along the demand curve" .

 
  A change in quantity demanded - - "a movement along a demand curve".
A change in quantity demanded - - "a movement along a demand curve".
 
  • Suppose the price falls from $4 to $2, the quantity demanded will increase from 2 units to 4 units.
 
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