CHANGE IN QUANTITY DEMANDED
A change in the quantity demanded of a commodity means a movement from one point to another on a demand curve. The cause of the changes in the quantity demanded is due to changes in the price of the commodity under consideration.
The quantity of a commodity demanded changes with price. More is purchased at a
lower price than at a higher price.
A change in the quantity demanded is of two parts:
- Increase in the quantity demanded: There is an increase in the quantity demanded provided the quantity purchased increases as a result of a decrease in the price of the commodity.
- Decrease in the quantity demon: In this case, there is a decrease in the demanded if the quantity of the con purchased decreases as a result of an increase in price.
SHIFT OR CHANGE IN DEMAND
A shift or change in demand in economics is QUITE different from change in the quantity demand as discussed. There is a change in demand if the demand curve shifts to an entirely new position. In this case, there is a comp new demand schedule and demand curve showing that at the old price more or less of the commodity would be purchased. A shift change in demand is determined by other factors affecting demand except the price of the commodity.
A shift or change in demand is also two divisions:
- Increase in demand:
When there is a demand, the demand curves shifts that at the old price, more of the commodity will be purchased. An increase is brought about by a favourable factors affecting demand other than the commodity. For example, if the of the consumers increase, more of the commodity is likely to be purchased at the old price.
(b) Decrease in Demand
When there is a decrease in demand, the demand curve will shift to the left, indicating that at the old price, less of the commodity is being purchased. A decrease in demand brought about by an unfavourable change in any of the factors affecting demand except the price of the commodity. For example, if there is a change in taste against a commodity, the demand for it will fall at the former price.