Microeconomics. Business and Marketing Assignment.

Microeconomics
Student’s Name
Institutional Affiliation

Microeconomics
In economics, changes in “quantity demanded” are different from “changes in demand.” The former refers to the change of the quantity purchased, which occurs due to the decrease or increase in the price of a specific product. Indeed, one can measure a change of the “quantity demanded” by determining the movement of a demand curve. On the contrary, a “change in demand” means a decrease or increase of the demand of a particular commodity that is caused by other determinants or factors, while the price is constant (Moon, 2018). In most cases, it is measured by shifting of the demand curve. Similarly, a change in the “quantity supplied” entails the movement along the curve, which occurs due to price changes. As such, it is caused by a decrease or increase in prices. A “change in supply” refers to the shift of the curve, which is caused by other determinants or factors, such as technology and raw materials availability, rather than the price. The most significant thing to understand is that the change in supply or demand causes the shifting of the curve. In contrast, the change in the quantity demanded or supplied leads to the movement of a curve.
As discussed above, it is clear that by holding the demand constant, the only thing that can lead to the change in the quantity demanded is the fluctuation of prices. For instance, a rise in the price of a particular product causes a reduction in the quantity demanded. On the contrary, a decrease in price results in an increase in the quantity of products demanded. Various factors can cause a change in demand for a specific product. They include consumers’ tastes and preferences, individuals’ income, changes in prices of complementary or substitute products, the number of consumers, people’s expectations of future prices, and advertisement e...