Economics Assignment: Concepts of Consumer Demand and Protectionist Policy

Running Head: ECONOMICS ASSIGNMENT
Economics Assignment
Name of the Student
Name of the University
Author note
Student ID

1ECONOMICS ASSIGNMENT
Table of Contents
Answer 1..........................................................................................................................................2
Introduction..................................................................................................................................2
Analysis.......................................................................................................................................2
Conclusion...................................................................................................................................5
Answer 2..........................................................................................................................................5
Introduction..................................................................................................................................5
Analysis.......................................................................................................................................6
Conclusion...................................................................................................................................8
Reference List..................................................................................................................................9

2ECONOMICS ASSIGNMENT
Answer 1
Introduction
Consumer demand is an important microeconomics concept that represents buyers’
willingness to buy a good at a given price (Hill & Schiller, 2015). The section briefly explains
the point of differences between change in quantity demanded and change in demand.
Analysis
Change in quantity demanded is a concept that explains change in amount of goods
demanded. Quantity demanded of a good changes following a change in own price of the good
assuming other factors affecting demand as constant. The change in demanded quantity of a
good depends on the relationship between own price and demand. The proposition of law of
demand suggests that price of a good is inversely related with quantity demanded of the good
when other factor remain constant. When quantity demanded increases due to a decline in price
then it is called expansion of demand (Maurice & Thomas, 2015). If quantity demanded
decreases following an increase in price, then it is termed as contraction of demand. Change in
quantity demanded is figured out by change in point on the demand curve. An expansion of
demand is captured by upward movement along the demand curve while a contraction in demand
is captured by a downward movement along the curve. The following figure describes the
influence of a change in quantity demanded in a framework of market demand and market
supply curve.