Question

-Give an example of something that would cause a change in the demand for a product and an example of something that would cause a change in the quantity demanded of that product. S

-State how each would be shown on a demand curve graph.

Answer 1

Ans) Quantity demanded is the amount that buyers demand at a particular price. The sole reason for change in quantity demanded is the price of good itself. It causes movement along the curve. An increase in price causes upward movement along the curve while a decrease in price causes downward movement along the curve.

Demand is the overall demand at different prices. There can be many reasons for change in demand, for eg- change in price of related goods, change in income, change in consumer preference, change in number of buyers etc. It causes shift in demand curve. An increase in demand causes rightward shift while a decrease in demand causes leftward shift.

Taking the example of oranges. A change in price of oranges will cause movement along the curve. While change in price of apple (or any other fruit), change in income of buyers etc will cause change in demand and will shift the demand curve.