Demand is said to be the quantity of a product that consumers are willing to buy at a particular price in a given period of time. There are many factors that can make a rational consumer to consider the quantity of product to be bought this will include price of the product, price of other products, taste, income of the consumer, available of close substitute among others.
All things being equal, a rational consumer will likely buy more of a product when its price is lower compare to the benefit to be derived from consuming such product while reverse will be the case if the price is higher.
Therefore a change in demand will occur if the price of the product changes. Take for example, when a consumer is earning #50per month and he is spending it all on buying apple. If the price of an apple is #5 the consumer will be buying 10 apples in a month, let now assume that the price of apple increase to #10 the same consumer can only be buying 5 apples if his income remain the same.
On the other hand, change in quantity demanded is a shift in the demand pattern as a result of changes in other factors other than the price of the commodity itself. Using our previous example, if the income of the consumer now changes to #100 while the price of apple remains at #5, this simply suggest that the consumer can now be able to buy 20 apples. Similarly if the consumer is informed that consuming oranges can give him the same satisfaction he derived from apple at a lower price, then he can totally shift his demand for apple to oranges.
In summary, change in demand is created by the price of the commodity itself which will result to a movement along the demand curve while change in quantity demanded is created by other factors of demand other than price of the commodity which will make the demand curve to shift to a new position.
Demand is said to be the quantity of a product that consumers are willing to buy at a particular price in a given period of time. There are many factors that can make a rational consumer to consider the quantity of product to be bought this will include price of the product, price of other products, taste, income of the consumer, available of close substitute among others.
All things being equal, a rational consumer will likely buy more of a product when its price is lower compare to the benefit to be derived from consuming such product while reverse will be the case if the price is higher.
Therefore a change in demand will occur if the price of the product changes. Take for example, when a consumer is earning #50per month and he is spending it all on buying apple. If the price of an apple is #5 the consumer will be buying 10 apples in a month, let now assume that the price of apple increase to #10 the same consumer can only be buying 5 apples if his income remain the same.
On the other hand, change in quantity demanded is a shift in the demand pattern as a result of changes in other factors other than the price of the commodity itself. Using our previous example, if the income of the consumer now changes to #100 while the price of apple remains at #5, this simply suggest that the consumer can now be able to buy 20 apples. Similarly if the consumer is informed that consuming oranges can give him the same satisfaction he derived from apple at a lower price, then he can totally shift his demand for apple to oranges.
In summary, change in demand is created by the price of the commodity itself which will result to a movement along the demand curve while change in quantity demanded is created by other factors of demand other than price of the commodity which will make the demand curve to shift to a new position.