Explain the difference between a change in demand and a change in quantity demanded
What will be an ideal response?
A change in demand is represented by a shift in the demand curve and can be caused by changes in non-price determinants of demand such as income, preferences, or prices of related goods. A change in quantity demanded is represented by a movement along the demand curve and is caused by a change in the price of the good in question.
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Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 0d and that it is 0u in country B.) Domestic output in country B will, after the emigration of labor:
A. Increase by area qrs
B. Increase by area qtus
C. Decrease by area qrs
D. Decrease by area qtus
If the number of highway deaths among young people is roughly proportional to their beer consumption, and young people's elasticity of demand for beer is 1.5, then to decrease highway deaths of young people by 15 percent, taxes would need to be increased enough to increase the price of beer by:
A. 1%. B. 1.5%. C. 10%. D. 15%.
Due to the network externalities in the game console market, we would expect this market to
A. be serviced by a natural monopoly. B. be highly concentrated. C. be efficient. D. overproduce game consoles.
The economy is experiencing a recession combined with inflation. The self-correction school would say the proper response is to_____.
A. increase government spending B. increase regulations on new research projects C. do nothing D. increase the money supply