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Question:

Distinguish between 'increase in demand' and 'increase in quantity demand' of a good.

Solution:

Distinguish between 'increase in demand' and 'increase in quantity demand' of a good.
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 1. Caused by 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. 2. Shown by It is shown by a movement along the demand curve.
3. Direction of Change In this case, the demand curve shift parallely outwards. 3. Direction of Change In this case, there is a downward movement to the right along the demand curve.