Sia
Question
Microeconomics
Posted 5 months ago
Which of the following correctly describes a change in quantity demanded and a change in demand?
Choose 1 answers:
A A change in quantity demanded is a response to a price change and a change in demand is a response to a non-price change
B A change in demand and a change in quantity demanded both happen in response to price changes
c Both describe a movement along a single demand curve
D The two terms can be used interchangeably
E A change in quantity demanded occurs when price increases and a change in demand occur when a price decreases
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Answer from Sia
Verified answerPosted 5 months ago
Solution
a
Change in Quantity Demanded: A change in quantity demanded is a response to a price change. This is represented by a movement along the demand curve
b
Change in Demand: A change in demand is a response to a non-price change, such as changes in consumer preferences, income, or prices of related goods. This is represented by a shift of the demand curve
Answer
A
Key Concept
Change in Quantity Demanded vs. Change in Demand
Explanation
A change in quantity demanded occurs due to a change in the price of the good itself, leading to movement along the demand curve. In contrast, a change in demand is caused by factors other than the price of the good, resulting in a shift of the entire demand curve.
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