Economics: Demand and Quantity Demanded Essay

Economics: Demand and Quantity Demanded Essay

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Executive Summary

In this report, I will be distinguishing Demand and Quantity Demanded by stating the differences between both terminologies. By referring to the textbook which we are using throughout our course plus resources from the internet, I have been able to collect some information about the definitions of demand and quantity demanded. The factors which affect the movement along the curve and shifting of the curve have been stated in the following pages in this report. Demand and Quantity Demanded are different in terminologies and also literally. The demand and quantity demanded curve has differences and it can be seen in the figures which I had pasted below.

What is Economics?

It is the study of resource allocation, distribution and consumption, of capital and investment, and of the management of the factors of production. (http://wikitionary.org/wiki/economics)
In short, economics is the study of how people allocating their limited resources.

What is demand?

According to the Economics textbook, "it refers to the range of quantities of a commodity, which a consumer is willing and able to buy at different price levels at a given time." In short, it is where the customers are willing to buy supported by money.

The law of demand states that if everything remains constant (ceteris paribus) when the price is high the lower the quantity demanded. A demand curve displays quantity demanded as the independent variable (the x-axis) and the price as the dependent variable (the y-axis). http://www.netmba.com/econ/micro/demand/curve/

Price
Quantity
Demanded
$5.00 10
$4.00 18
$3.00 26
$2.00 38
$1.00 53

In the graph, it shows the law of demand; as the price increase there is a decrease in the quan...


... middle of paper ...


... if the price increases or decreases.

6. Government policies
The introduction of new taxes, especially taxes for the goods bought, the demand will surely decrease. The curve will shift to the left.

Difference between Demand and Quantity Demanded

Demand is where the price is not the factor which will shift the demand curve to the left or right. There is no movement along the demand curve as the price remains the same even though there is a shift in demand. Change in demand is represented by the shift of the demand curve.

Quantity demanded is where the price is the factor. The movement along the demand curve only happens if there is a change in price. If there is a movement along the curve, the demand does not change. Change in quantity demanded is represented by the movement along the demand curve.

A change in quantity demanded A change in demand

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