Theory question 111
Theory of DemandDistinguish between the following: (a) wants and effective demand; (b) demand schedule and demand curve; (c) individual demand and market demand; (d) change in demand and change in quantity demanded.
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(a) Wants are desires for goods and services, not necessarily backed by money; effective demand is a want backed by willingness and ability to pay at a given price.
(b) A demand schedule is a table of quantities demanded at different prices; a demand curve is the graph of that schedule.
(c) Individual demand is the quantity one consumer buys at various prices; market demand is the total of all individual demands at each price.
(d) A change in demand is caused by factors other than the good's own price and shifts the whole curve; a change in quantity demanded is caused by a change in the good's own price and is a movement along the same curve.
Give both sides of each pair.