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Distinguish Between ‘Increase in Demand’ and Increase in Quantity Demanded of a Good. - Economics

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Distinguish between ‘increase in demand’ and increase in quantity demanded of a good.

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Solution

Increase in demand and increase in quantity demanded of a good

Increase in quantity demanded Increase in demand
It refers to quantity demanded changes
due to change in the price remaining
other factors constant.
It refers to a rise in demand for a
commodity because of factors other than
the price.

Factors which cause the increase in quantity demanded

  • An increase or a decrease in the
    price of the given commodity

Factors which cause the increase in demand

  • Increase in income of the
    consumer
  • The rise in the price of the substitute good
  • Fall in price of complementary
    good
  • Change in taste and preferences
    in favour of the good
It leads to a movement along the same
demand curve either upwards or
downwards
It leads to shifts in the demand curve
either rightwards or leftwards.
Concept: Demand
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