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. |