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Distinguish Between ‘Increase in Demand’ and Increase in Quantity Demanded of a Good. - Economics

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प्रश्न

Distinguish between ‘increase in demand’ and increase in quantity demanded of a good.

उत्तर

Increase in demand and increase in quantity demanded of a good

Increase in quantity demanded Increase in demand
It refers to quantity demanded changes
due to change in the price remaining
other factors constant.
It refers to a rise in demand for a
commodity because of factors other than
the price.

Factors which cause the increase in quantity demanded

  • An increase or a decrease in the
    price of the given commodity

Factors which cause the increase in demand

  • Increase in income of the
    consumer
  • The rise in the price of the substitute good
  • Fall in price of complementary
    good
  • Change in taste and preferences
    in favour of the good
It leads to a movement along the same
demand curve either upwards or
downwards
It leads to shifts in the demand curve
either rightwards or leftwards.
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2016-2017 (March) All India Set 1

संबंधित प्रश्‍न

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Quantity demanded varies directly with price.


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Demand curve slopes downward from left to right.


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Read the following news report and answer the Q.97-Q.100 on the basis of the same:

The quantity of a commodity that a consumer is willing to buy and is able to afford, given the prices of goods and the consumer's tastes and preferences is called demand for the commodity. Whenever one or more of these variables change, the quantity of the good Chosen by the consumer is likely to change as well. The relation between the consumer's optimal choice of the quantity of a good and its price is very important and this relation is called the demand function. Thus, the consumer's demand function for a good gives the amount of the good that the consumer chooses at different levels of its price when the other things remain unchanged.

Assertion: The income of the consumers remains unchanged

Reason: Commodity should be a normal good.

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Read the following news report and answer the Q.97-Q.100 on the basis of the same:

The quantity of a commodity that a consumer is willing to buy and is able to afford, given the prices of goods and the consumer's tastes and preferences is called demand for the commodity. Whenever one or more of these variables change, the quantity of the good Chosen by the consumer is likely to change as well. The relation between the consumer's optimal choice of the quantity of a good and its price is very important and this relation is called the demand function. Thus, the consumer's demand function for a good gives the amount of the good that the consumer chooses at different levels of its price when the other things remain.

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In an open economy, Aggregate Demand is estimated as:


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