Question

The market is comprised of the forces of Supply and Demand. Free societies rely on the market to answer the fundamental questions: what, how and whom? The market is like a pair of scissors that needs both supply and demand to set prices people pay for goods and services. It is a natural order that works with nobody in control. There are supply and demand schedules as well as supply and demand curves. The supply curve is a graph of the supply schedule, and the demand curve graphs the demand schedule. At a price where quantity supplied equals quantity demanded, there is an equilibrium price and quantity. The price for a good or service remains at the equilibrium price

State the difference between “change in quantity demanded” vs “change in demand” & list the factors that cause the changes.

Answer 1

Ques Change in Quantity Demanded # When demand change because of change Lin own pecice of à commodity we have change in Quantity Demanded factor that cause the change in quantity Demanded is own pecice of a commodity 94 own peeice of a commodity decrease there is expansion of comand Ik own Pecice of a commodite increases there is contee action of . Demand It leads to the Demand movement along Cuore

Pago _Expansion of Demand Contraction of Demand DVB o ao ao a og Change in Demand It occurs due to change in factors affecting Demand other than Pecice. Wok & commoditya There can leftward shift of Rightward shift of the Demand Curve in this case dow of bemand is not applicable in this case as non-preice foctor affecting the Domand factor causes change in demand * Change in Pecice of complementary goods * change in Price of Jubstitute geods. * Change in consumor taste and perference I * change in future expectation about Peices

Datel Page * * Change in size of the population, Change in Income lover of the onsumer Doce Ter o ai Qo QQ, a Rigut word swift Loftware of Demand Cune Swift of fue Demand Curve