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Question

Distinguish between 'increase in demand' and 'increase in quantity demand' of a good.

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Solution

Distinguish between 'increase in demand' and 'increase in quantity demand' of a good.

Points of Difference
Increase in
Demand
Increase in Quantity Demanded (Expansion of Demand)
1.

Caused by

It is caused by factors other than change in price. namely-Increase in the income of the consumer
Increase in the price of the substitute goods
Change in tastes and perferences in favour of the commodity
Expectation of price rise in future
Increase in the total number of
It is caused by a fall in the price of the commodity
2.
Shown by
It is shown by a shift in the demand curve.
It is shown by a movement along the demand curve.
3.
Direction of Change
In this case, the demand curve shift parallely outwards.
In this case, there is a downward movement to the right along the demand curve.





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