THE MISCONCEPTION

DIFFERENCE BETWEEN CHANGE IN DEMAND AND CHANGE IN QUANTITY DEMANDED

Most of the people believe that change in demand and change in quantity demanded is same but this is not the same.There is a big difference between change in demand and change in quantity demanded.Let us see both of these concepts separately.

CHANGE IN DEMAND

Change in demand refers to change in demand due to change in non-price factors like taste.fashion,income.For example if a person's income has increased he will shift his interests to better quality products.

In the above figure,it is quite cleared that prices are the same but demand curve shifts from D1 to D2.That shows this shift in demand curve is due to change in any variable OTHER THAN PRICE OF THE PRODUCT.

CHANGE IN QUANTITY DEMANDED

Change in quantity demanded is refers to change in the demand of the product due to change prices of the product while other factors are constant.For example if a person's income is CU100 and he buys a product from one shop at CU2 and that shop keeper increases or decreases the prices of that product,the demand of his product shall also vary as shown in the figure below

In the above it is quite clear that quantity demanded of the product varies due to only variation in prices.In this case we move along the demand curve.

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