Difference between Change in Quantity Demanded and Change in Demand

Running head: ECONOMICS 1
Economics
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ECONOMICS 2
ECONOMICS
Introduction
Economics describes how individuals, households, and society as a whole choose to
allocate scarce resources towards productive courses (Brooks, 2014). It answers the questions of
what, how, and for whom to produce goods and services. This essay discusses the difference
between change in quantity demanded and change in demand with diagrammatical illustrations.
In addition, protectionist international trade policies are highlighted with regard to President
Trump’s trade policies in the United States.
Analysis
Demand is the quantity of goods and services that buyers are willing and ready to
purchase at a certain price in the market (Bos, 2014). Supply on the other hand is the amount of
goods and services that traders are willing to sell in the market at various prices. Economic
decisions cannot be made unilaterally based on demand considerations. The interaction of
demand and supply factors is considered in order to generate rational economic decisions. The
demand and supply curve indicate the relationship between product price and quantity demanded
and supplied respectively.

ECONOMICS 3
Figure 1
Figure 1 above illustrates how demand curve and supply curve interact. The demand curve D is
negatively sloping implying that consumers demand more at lower prices and less at higher
prices. The supply curve is positively sloping indicating that producers produce more of a
product when their prices are high. The point of intersection of the two curves is the market
equilibrium point. At this point the quantity supplied and demanded are equal.
Distinction between change in demand and Quantity demanded
Change in quantity demanded is change in amount of a product purchased by consumers
in response to changes in prices of the product. When price of a product increase, the quantity
demanded of a product declines. However, a price decrease leads to an increase in quantity
demanded. Change in quantity demanded of a product is illustrated by a movement along the
demand curve (Ehrenberg & Smith, 2016).