[Tux]

I’ve posted a BEC Wiley MCQ below. Can ya’ll tell me what’s the difference between change in demand, and change in quantity demanded?

I chose A – Change in demand.

The solution says – this answer is incorrect. Movement along the curve reflects a change in demand.

That explanation is confusing.

The correct answer is change in quantity demanded.

See question below…..

The movement along the demand curve from one price-quantity combination to another is called a(n)

Change in demand.

Shift in the demand curve.

Change in the quantity demanded.

Increase in demand.

FAR - 86 - 2/27/14
AUD - 75 - 5/29/14
BEC - 80 - 8/31/14
REG - 89 - 2/27/15
Praise Jesus! I'm done!!

Study resources:
Becker
Wiley test bank

[Anonymous]

Quantity demanded changes when the price of the good changes. If the price of the good increases, quantity demanded decreases. This is illustrated as a movement along the demand curve (the demand curve is not shifting).

A change in demand (which is represented by a shift in the demand curve), occurs when one or more of the determinants of demand changes. Determinants of demand include consumers preferences, income, and the prices of substitute goods.

To illustrate both cases, consider the market for vodka. If the price of gin (assume that it is a substitute good for vodka) increases considerably, then the QUANTITY OF GIN DEMANDED WOULD DECLINE, and the DEMAND FOR VODKA WOULD INCREASE (represented by a increase/shift in the demand curve for vodka).

[Tux]

OK. Thanks.

So, two of the choices listed are:

change in demand

shift in demand curve

Are you saying those mean the same thing?

FAR - 86 - 2/27/14
AUD - 75 - 5/29/14
BEC - 80 - 8/31/14
REG - 89 - 2/27/15
Praise Jesus! I'm done!!

Study resources:
Becker
Wiley test bank

[Anonymous]

no, think of it like this….

if anything other than the price of a good changes and the price of the good stays the same, then it will alter the demand of the good. For example, if hamburger goes on sale, assuming that price stays the same, the demand for hamburger buns will increase, this means that at any given price point there would be more quantity demanded, so if originally they were charging 5 bucks for a bag of hamburger buns, then at 5 bucks, more people are going to want the buns, well in order to graph that change, the line, must shift to the right….

now on the other hand, if everything else stays the same, the demand curve stays in the original spot, and the bun manufacturer just raises their price, then fewer people are going to be willing to purchase the buns, therefore the demand for the product is the same, but the price of the buns is higher so fewer people want them, quantity demanded has changed…

its much clearer with graphs…

let me find a link

[Anonymous]

no, think of it like this….

if anything other than the price of a good changes and the price of the good stays the same, then it will alter the demand of the good. For example, if hamburger goes on sale, assuming that price stays the same, the demand for hamburger buns will increase, this means that at any given price point there would be more quantity demanded, so if originally they were charging 5 bucks for a bag of hamburger buns, then at 5 bucks, more people are going to want the buns, well in order to graph that change, the line, must shift to the right….

now on the other hand, if everything else stays the same, the demand curve stays in the original spot, and the bun manufacturer just raises their price, then fewer people are going to be willing to purchase the buns, therefore the demand for the product is the same, but the price of the buns is higher so fewer people want them, quantity demanded has changed…

its much clearer with graphs…

let me find a link

[Anonymous]

https://www.youtube.com/watch?v=W7FCZ4i-JgI

[Anonymous]

really short video, but it explains it exactly how im trying to…

[h0wdyus]

So

“Change in Demand” is Synonymous to “Shift in Demand”

While “Change in Quantity Demanded” is a term used only when demand changes due to price variation. “Shift in Demand” happens due to factors other than price.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[Tux]

Thanks, Howdy –

But, that's what I asked above, and dethnode disagreed.????….

I asked –

“change in demand

shift in demand curve

Are you saying those mean the same thing? “

Dethnode responded with a “no”, but it was late at night. Maybe my question wasn't clear.

I believe I understand the difference between change in demand vs. quantity demanded.

A comment about my original post –

I chose “change in demand” and it was incorrect. Wiley's explanation says “Movement along the curve reflects a change in demand.”

But isn't that incorrect? Movement along the curve does not shift the curve. It reflects a change in price.

Am I getting it??

I think I do, but need confirmation.

FAR - 86 - 2/27/14
AUD - 75 - 5/29/14
BEC - 80 - 8/31/14
REG - 89 - 2/27/15
Praise Jesus! I'm done!!

Study resources:
Becker
Wiley test bank

[h0wdyus]

movement along the curve is “change in quantity demanded” this is due to price variation

change in demand OR shift in demand curve is due to reasons other than price change of the product.

I am using wiley too, there “change in demand” is loosely considered to mean changes due to price.

As per the video link attached earlier, it mean ” change in quantity demanded” is due to change in price , which you and I both have been thinking of as “change in demand”.

AS per the video the change in demand means shift in demand.

So keep this subtle difference in mind

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[h0wdyus]

@Tux

Change in Quantity Demanded: A change in quantity demanded is a change from one price-quantity pair on an existing demand curve to a new price-quantity pair on the SAME demand curve. In other words, this is a movement along the demand curve. A change in quantity demanded is caused by a change in price.

Change in Demand: A change in demand is a change in the ENTIRE demand relation. This means changing, moving, and shifting the entire demand curve. The entire set of prices and quantities is changing. In other words, this is a shift of the demand curve. A change in demand is caused by a change in the five demand determinants.

https://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=change+in+quantity+demanded

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[Anonymous]

Tux i apologize, i read your question too quickly and did not respond correctly, i thought you were asking if movement along the demand curve and change in demand were the same thing, to which the response is no…

however, a change in demand and a demand curve shift are the same

[Tux]

Got it! Thanks a bunch –

One more clarification –

I believe “change in demand” is also the same as “change in aggregate demand” , correct?

– i.e. a SHIFT in demand curve NOT related to price.

FAR - 86 - 2/27/14
AUD - 75 - 5/29/14
BEC - 80 - 8/31/14
REG - 89 - 2/27/15
Praise Jesus! I'm done!!

Study resources:
Becker
Wiley test bank

[h0wdyus]

Change in aggregate demand is an Macro concept. if you think about it how can you plot the price of all the products in the economy. The aggregate demand must use price levels. I think it is related to quantity demanded rather than shift in demand.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[Tux]

Oops !

So, I was thinking of it backwards?

Aggregate demand is due to change in price, not shift in demand curve unrelated to price?

FAR - 86 - 2/27/14
AUD - 75 - 5/29/14
BEC - 80 - 8/31/14
REG - 89 - 2/27/15
Praise Jesus! I'm done!!

Study resources:
Becker
Wiley test bank

[h0wdyus]

I checked the graph.. It is Output on X axis and Price Level on Y axis

The aggregate demand curve illustrates the relationship between two factors – the quantity of output that is demanded and the aggregate price level. Aggregate demand is expressed contingent upon a fixed level of the nominal money supply. There are many factors that can shift the AD curve. Rightward shifts result from increases in the money supply, in government expenditure, or in autonomous components of investment or consumption spending, or from decreases in taxes.

https://en.wikipedia.org/wiki/Aggregate_demand

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[Author]

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