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Questions
Distinguish between ‘increase in demand’ and increase in quantity demanded of a good.
Distinguish between ‘increase in demand’ and ‘increase in quantity demanded’ of a commodity.
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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
|
Factors which cause the increase in demand
|
| 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. |
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