What is the difference between an “increase in demand” and an “increase in quantity demanded”?
1. Increasing demand refers to an increase in consumers’ desire for a particular good or service, whereas increasing quantity demanded refers to consumers’ willingness to purchase more of that good or service.
2. The demand for a product is usually increased by external factors such as a consumer preference change or a population increase. Price changes usually lead to an increase in quantity demanded.
3. Demand shifts upwards as demand increases, whereas quantity demanded shifts along the demand curve as quantity increases.
4. The quantity demanded will typically increase when demand increases, but not always. Price increases, for example, may increase quantity demanded, but not necessarily demand, if the price of a good increases.
5. Price increases are often associated with demand increases, while price decreases are often associated with demand increases.
6. Increases in demand occur over longer periods of time, while increases in quantity demanded occur over shorter periods.
7. A change in consumer behavior or attitudes can lead to an increase in demand, while changes in the market or economic conditions can lead to an increase in quantity demanded.
8. It is possible for a company to change its production capacity if demand increases, but an increase in quantity demanded is not necessarily necessary.
9. Prices may rise when demand increases, but quantities demanded don’t necessarily rise when demand increases.
10. When demand increases, the price of a good or service increases, while when quantity demanded increases, the price does not necessarily rise.
11. An increase in demand may lead to a change in the distribution of a good or service, while an increase in quantity requested is not necessarily linked to changes in distribution.
12. A rise in demand may result in a change in the level of competition, whereas a rise in quantity demanded is not necessarily accompanied by a change in the level of competition.
13. Advertisement and marketing efforts may be increased as a result of an increase in demand, but they are not always changed as a result of an increase in quantity demanded.
14. Innovation and research and development can be influenced by increased demand, while quantity demanded doesn’t necessarily affect innovation or research and development.
15. Customer service may increase as a result of an increase in demand, but not necessarily as a result of an increase in quantity demanded.
16. The level of employment in an industry may rise as demand increases, while job growth is not always a result of increases in quantity demanded.
17. It is possible to increase exports if demand increases, but it is not necessarily true that quantity demanded increases exports.
18. Imports may increase as demand increases, but a change in the quantity demanded does not necessarily affect imports.
19. It is possible for government regulations to increase in response to increases in demand, but not necessarily with increases in quantity demanded.