Monday 19 June 2017

For each of the following changes, will there be a change in quantity demanded or a change in demand? A change in the price of a related good...

There is only one factor that can cause a change in quantity demanded as opposed to a change in demand.  The only factor that can cause a change in quantity demanded is a change in the price of the good in question.  As an example, the only thing that can change the quantity demanded of Whoppers from Burger King is the price that Burger King charges for the Whoppers.


A demand curve is a curve...

There is only one factor that can cause a change in quantity demanded as opposed to a change in demand.  The only factor that can cause a change in quantity demanded is a change in the price of the good in question.  As an example, the only thing that can change the quantity demanded of Whoppers from Burger King is the price that Burger King charges for the Whoppers.


A demand curve is a curve that shows how much of a product consumers are willing and able to buy at all possible price levels.  A change in quantity demanded is simply a movement along that line.  The only thing that can cause a movement along that line is a change in the price of the product.


A change in demand occurs when consumers want more or less of a product than they did before at the same price.  This means that the demand curve has moved.  There are many factors that can cause the demand curve to move.  For example, a change in consumer tastes will make people want more of a product if it becomes popular or less if it loses popularity. Of the factors that you mention in this question, all of them move the demand curve (causing a change in demand) except for (iv) a change in price.

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