Demanded

A movement from one point to another on a demand curve.

Changes in Quantity Demanded

A change in demand must not be confused with a change in quantity demanded. A change in demand is a shift of the entire demand curve to the right (an increase in demand) or to the left (a decrease in demand). It occurs because the consumer's state of mind about purchasing the product has been altered in response to a change in one or more of the determinants of demand. Recall that demand is a schedule or a curve; therefore, a change in demand means a change in the entire schedule and a shift of the entire curve.

In contrast, a change in quantity demanded is a movement from one point to another point—from one price-quantity combination to another—on a fixed demand schedule or demand curve. The cause of such a change is an increase or decrease in the price of the product under consideration. In Table - , for example, a decline in the price of corn from $5 to $4 will increase the quantity of corn demanded from 2000 to 4000 bushels.

In Figure - the shift of the demand curve D1 to either D2 or D is a change in demand. But the movement from point a to point b on curve D1 represents a change in quantity demanded: demand has not changed; it is the entire curve, and it remains fixed in lace.

• A market is any arrangement that facilitates the purchase and sale of goods, services, or resources.

• The demand curve shifts because of changes in (a) consumer tastes, (b) the number of buyers in the market, (c) consumer income, (d) the prices of substitute or complementary goods, and (e) consumer expectations.

• A market is any arrangement that facilitates the purchase and sale of goods, services, or resources.

• Demand is a schedule or a curve showing the amount of a product that buyers are willing and able to purchase at each possible price in a series of prices, in a particular time period.

• The law of demand states that, other things equal, the quantity of a good purchased varies inversely with its price.

• The demand curve shifts because of changes in (a) consumer tastes, (b) the number of buyers in the market, (c) consumer income, (d) the prices of substitute or complementary goods, and (e) consumer expectations.

• A change in demand is a shift of the entire demand curve; a change in quantity demanded is a movement from one point to another on a demand curve.

Supply supply A

schedule or curve that shows the amounts of a product that producers are willing and able to make available for sale at each of a series of possible prices during a specific period.

Up to this point we have concentrated our attention on the nature of wants. In order for wants to be satisfied someone must produce the goods and services desired. We now turn to investigate the nature of supply.

Supply is a schedule or curve that shows the amounts of a roduct that roducers are willing and able to make available for sale at each of a series of possible prices during a s ecific eriod.2 Table -5 is a hypothetical supply schedule for a single producer of corn. It shows the quantities of corn that will be supplied at various prices, other things equal.

2This definition is worded to apply to product markets. To adjust it to apply to resource markets, substitute resource for product and owner for the word producer.

PARt One • An INtRoDuctioN to Economics and thE Economy

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