Change in Demand vs. Change in Quantity Demanded
-
0:00 - 0:03♪ [music] ♪
-
0:14 - 0:15- [Narrator] Economists
use similar terms -
0:15 - 0:17for two things
which are quite different: -
0:17 - 0:22a change in the quantity demanded
versus a change in demand. -
0:22 - 0:25It can be a little confusing,
so let's review. -
0:25 - 0:27A change in quantity demanded
-
0:27 - 0:31refers to a movement
along a fixed demand curve -- -
0:31 - 0:33that's caused by a change in price.
-
0:34 - 0:38Change in demand refers to
a shift in the demand curve -- -
0:38 - 0:42that's caused by one
of the shifter's income, -
0:42 - 0:46preferences, changes in the price
of related goods and so on. -
0:46 - 0:49Let's illustrate the difference
with a refreshing example. -
0:49 - 0:50We'll use soda.
-
0:51 - 0:53- [Woman 1] Um, don't you mean pop?
-
0:53 - 0:55- [Man] That's coke, y'all!
-
0:55 - 0:58- [Woman 2] Actually, soft drink
is the most accurate term, so... -
0:58 - 1:01- [Narrator] Fine, we'll just use
sugary, fizzy drinks, okay? -
1:01 - 1:05First, let's recall a change
in the quantity demanded. -
1:05 - 1:07Suppose the price
on sugary, fizzy drinks -
1:07 - 1:10goes from $3 to $4.
-
1:10 - 1:11What happens?
-
1:11 - 1:16Well, the quantity demanded
decreases from 200 to 150. -
1:16 - 1:19There's a decrease
in the quantity demanded -
1:19 - 1:22marked by movement
along the demand curve. -
1:22 - 1:25But there's no change
in the existing demand curve. -
1:26 - 1:29Now, let's look at
a change in the demand, -
1:29 - 1:31in this case, a decrease
in the demand -
1:31 - 1:34of [sighs] sugary, fizzy drinks
-
1:34 - 1:37caused by a viral
marketing campaign -
1:37 - 1:40for naturally sweetened,
sparkling water. -
1:40 - 1:44People just aren't as excited
about sugary, fizzy drinks anymore. -
1:44 - 1:47The decrease in demand
shifts the entire demand curve -
1:47 - 1:49down into the left
-
1:49 - 1:53and leads, as we know,
to a lower quantity at every price. -
2:01 - 2:03In the first case, on the left,
-
2:03 - 2:05we have a decrease
in the quantity demanded -- -
2:05 - 2:08that is a movement
along a fixed demand curve. -
2:08 - 2:11In the case on the right,
we have a decrease in demand. -
2:11 - 2:15The entire demand curve
shifts down into the left. -
2:15 - 2:16An easy way to remember this
-
2:16 - 2:20is that our graph tracks changes
in price and quantity. -
2:20 - 2:24If a change occurs in a variable
other than price or quantity -- -
2:24 - 2:27that is, something
not measured on either axis -- -
2:27 - 2:30that will represent a shift
in the demand curve. -
2:30 - 2:35Prices on the vertical or y-axis,
so change in price alone, -
2:35 - 2:37will cause movement
along the curve. -
2:37 - 2:40A change in income,
population, tastes, etc. -- -
2:40 - 2:43none of these are measured
on either axis, -
2:43 - 2:47and thus, we'll see a shift
in the entire demand curve. -
2:47 - 2:49So there you have it.
-
2:49 - 2:51Similar terminology
can be confusing, -
2:51 - 2:54but if you follow the curves,
you won't have to worry. -
2:57 - 2:58If you're a teacher,
-
2:58 - 3:01you should check out
our Supply and Demand unit plan -
3:01 - 3:02that incorporates this video.
-
3:02 - 3:05If you're a learner,
make sure this video sticks -
3:05 - 3:08by answering a few
quick practice questions. -
3:08 - 3:10Or if you're ready
for more microeconomics, -
3:10 - 3:12click for the next video.
-
3:13 - 3:15♪ [music] ♪
- Title:
- Change in Demand vs. Change in Quantity Demanded
- Description:
-
What is the difference between a change in quantity demanded and a change in demand?
This video is perfect for economics students seeking a simple and clear explanation.
A *change in demand* refers to a shift in the demand curve, which is caused by a number of factors such as income, population, etc. A *change in quantity demanded* refers to a movement along a fixed demand curve, which is caused by a change in price.
Master this concept by watching the video and then taking the practice questions.
***TEACHER RESOURCES***
Supply and Demand 5-day HS unit plan: https://mru.io/finding-equilibrium-8d0d3Assessment questions: https://mru.io/principles-29121
EconInbox, a free weekly email of class-ready news articles, videos, and more: https://mru.io/econinbox-0818b
More high school teacher resources: https://mru.io/high-school-c89b8
More professor resources: https://mru.io/university-teaching-d5289
***CONTINUE LEARNING***
Next video—A Deeper Look at the Supply Curve: https://mru.io/look-supply-d33aePractice questions: https://mru.io/go0
Full Microeconomics course: https://mru.io/qez
- Video Language:
- English
- Team:
- Marginal Revolution University
- Project:
- Micro
- Duration:
- 03:19
Kirstin Cosper edited English subtitles for Change in Demand vs. Change in Quantity Demanded | ||
Kirstin Cosper edited English subtitles for Change in Demand vs. Change in Quantity Demanded | ||
Theresa Ranft edited English subtitles for Change in Demand vs. Change in Quantity Demanded | ||
Theresa Ranft edited English subtitles for Change in Demand vs. Change in Quantity Demanded | ||
Theresa Ranft edited English subtitles for Change in Demand vs. Change in Quantity Demanded | ||
Theresa Ranft edited English subtitles for Change in Demand vs. Change in Quantity Demanded | ||
Theresa Ranft edited English subtitles for Change in Demand vs. Change in Quantity Demanded |