Question

Distinguish between ‘decrease in demand’ and ‘decrease in quantity demanded’ of a commodity.

Answer 1

Basis of Difference	Decrease in Demand	Decrease in Quantity Demanded
Meaning	Demand falls due to a factor other than the good’s own price	Quantity demanded falls because the good’s own price rises
Cause	For example, lower income for a normal good or a rise in the price of a complement	Rise in own price
Curve effect	Leftward shift of the demand curve	Upward movement along the same demand curve
Other factors	A non-price determinant changes	Assumed constant
Related term	Change in demand	Contraction in demand