Economics Assignment - Demand and Protectionism Policy

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

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

2ECONOMICS ASSIGNMENT
Answer 1
Introduction
In economics, demand of a good refers to the willingness to buy a good backed by the
purchasing power of people (Baumol & Blinder, 2015). The concept of quantity demand
however differs from that of demand. This section briefly distinguishes between change in
demand and change in quantity demand and its impact on market equilibrium.
Analysis
Change in quantity demand
Demand curve of a commodity represents the relationship between price and quantity
demanded of the commodity. The demand curve slopes downward indicating an inverse relation
between price and quantity demand. The term quantity demand is a narrow term. It indicates a
specific point on the demand curve. From the demand curve, effect of a change in price on the
quantity demanded can be found. An increase in price is associated with a decline in quantity
demand and vice-versa. Effect of a price increase or price decrease can be observed from a
movement along the demand curve either from left to right or right to left (McKenzie & Lee,
2016). These movements are called change in quantity demanded and described as expansion or
contraction of demand. Quantity demanded of a commodity change only due to a change in price
holding other factors constant.