| Posted on April 15, 2014 at 8:50 AM |
The law of demand states that as the price decreases, the quantity demanded will increase. A change in quantity demanded occurs when the price of the product changes. This means that you move point-to-point along the demand curve.
A change in demand refers to a shift of the entire demand curve. This is caused by a change in the determinants of demand.
Change in quantity demanded: point-to-point movement along demand curve
Change in demand: shift of the demand curve
AP Macroeconomics / AP Microeconomics Unit 1 Basic Economic Concepts
Categories: AP Macroeconomics, Macro Unit 1 Basic Economic Concepts, Micro Unit 1 Basic Economic Concepts
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