Question

Distinguish between:

1. Desire and demand

2. Increase in demand and decrease in demand

3. Individual demand and market demand

4. Inferior goods and superior goods

Answer 1

1.

Desire	Demand
Desires refer to those wishes that a human being cherishes.	Demand refers to the quantity of goods that individuals are willing to buy.
They may or may not be backed by financial power.	It should be backed by financial power.
For example: Walking on the moon	For example, a consumer demands 2 kg sugar at Rs 10 per kg and 3 kg sugar at Rs 8 per kg.

2.

Increase in Demand	Decrease in Demand
More quantity is demanded because of the change in factors other than price.	Less quantity is demanded because of the change in factors other than price.
It leads to a rightward shift in the demand curve.	It leads to a leftward shift in the demand curve.

3.

Individual Demand	Market Demand
It refers to the demand for a product by a single consumer.	It refers to the demand for a product by all consumers in the market.
The demand curve for individual demand is relatively steeper.	The demand curve for market demand is relatively flatter.
It represents various quantities of a particular commodity that a consumer (single buyer) is willing to purchase at different possible prices.	It represents various quantities of a particular commodity that all consumers in the market are willing to purchase at different possible prices.

4.

Inferior Goods	Superior Goods
They have a negative relationship with the income of a consumer.	They have a positive relationship with the income of a consumer.
For example - Maize	For example - Branded clothing