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InterviewSolution
| 1. |
Change in quantity demanded and law of demand both are the same things. Explain? |
| Answer» Change in quantity demanded and law of demand are different :Differences between change in demand and change in quantity demanded are\tBasisChange in DemandChange in quantity DemandedReasonIt is caused by a change in prices of substitutes,change in prices of complementary goods,change in income, etc. other than the own price of the commodity.It is caused by an increase or decrease in the price of the given commodity, keeping other factors constant.Impact on demand curveIt leads to a shift in the demand curve either rightwards (known as increase in demand)or leftwards(known as decrease in demand).It leads to a movement along the same demand curve either upwards(known as contraction in demand)or downwards(known as expansion in demand)Diagrammatic PresentationDiagrammatically, this is shown as a forward or backward shift in demand curve.Diagrammatically, this is shown as a downward or an upward movement on the same demand curve.\t\xa0 | |