The price of a product goes up. Will this cause a change in demand or a change in quantity demanded?

Answer 1

When the price of a product rises, the QUANTITY DEMANDED of that product falls (often). This is represented diagrammatically by a leftward (upward) movement on the demand curve, and NOT by a leftward shift of the whole demand curve.

DEMAND changes due to changes in any other factors than price, such as change in customers' tastes, change in advertising and promotional spending, etc. When DEMAND changes, the whole demand curve shifts.

Answer 2

They are the same. But changing the price will not necessarily change demand. You can raise the price of gas, but people still need the same amount of gas to do the things they do. A price raise does not automatically cause a shift in demand.

Answer 3

Hi,
A 2 part answer is required for your question:

1. The Law of Demand states that when a good's price is lower, consumers will demand more of it. When the good's price increases, consumers will demand less of it.

The Law of Demand is a good starting point of reference to what happens with the demand of goods and services as prices change, but this law does not address the fact that there can be elastic demand, as well as inelastic, and what effect these two types of demand have upon the market.

Inelastic Demand - is in effect on goods and services that consumers feel they must have. A good example in the U.S. would be electricity. With electricity, as the price goes up, demand would likely remain much the same as before the price increase (because it's a "must have" item).

Elastic Demand - is in effect on all "non-essential" goods and servcies. A good example would be a generic brand of jeans. As the price rises on generic jeans, consumers will begin to demand less and less of generic jeans. If prices were to decline on generic jeans, consumers would begin to demand more of generic jeans.

2. When one considers the concepts of inelastic and elastic demand, it should be clear that elastic demand conforms to the Law of Demand, and that inelastic demand does not conform to the Law of Demand.

I hope this helps!

Answer 4

Quanity Demanded. Price will only change the amount demanded or suppled. A shift in the supply or demand curve is due to other factors, but price is not one of them.

Answer 5

change in the quantity demanded. Will still want but will buy less of.

Answer 6

And the real world differnece between demand and quantity demanded is?

Answer 7

depending on the product. The more gas goes up, the more we all seem to be driving... so it all depends.