Changes in Quantity Demand and Changes in Demand

Running head: ECONOMICS
Economics
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1ECONOMICS
Table of Contents
Question 1........................................................................................................................................2
Changes in quantity demand and changes in demand.................................................................2
Question 2........................................................................................................................................5
Changes in quantity supplied and changes in supply..................................................................5
Question 3........................................................................................................................................7
Question 4........................................................................................................................................8
References......................................................................................................................................11

2ECONOMICS
Question 1
Changes in quantity demand and changes in demand
` Changes in quantity demand indicate changes in the purchased quantity due to a change n
own price of the product. In such case, there occurs a movement along the demand curve. In
contrast changes in demand, refers to increase or decrease in demand due to change in factors
other than price (Cowell 2018). Following a change in demand, there occurs a rightward or
leftward shift of the demand curve.
a)
Figure 1: Effect of a fall in own price of apples
A fall in own price people induces people to purchase more apple increasing the quantity
demand of apple. Following this there is a downward movement along the demand curve from
point A to B as shown in the above figure.

3ECONOMICS
b)
Figure 2: Effect of an increase in consumer income
An increase in consumer income allows people to buy more apple. This increases demand
for apple shifting the demand curve to the right (Baumol and Blinder 2015).
c)
Figure 3: Effect of a rise in price of oranges