Shaia Vincent
AC2103650
C13 Microeconomics
Module 5 Assignment
1. Difference between “change in demand” and a “change in quantity demanded”- It’s
hard to overstate the importance of understanding the difference between shifts in
curves and movements along curves. Remember, when we talk about changes in
demand or supply, we do not mean the same thing as changes in quantity demanded or
quantity supplied. A change in demand refers to a shift in the entire demand curve,
which is caused by a variety of factors (preferences, income, prices of substitutes and
complements, expectations, population, etc.) In this case the entire demand curve
moves left or right. A change in quantity demanded refers to a movement along the
demand curve, which is caused only by a chance in price. In this case, the demand curve
doesn’t move; rather, we move along the existing demand curve (Lumen, introduction
to business, module 2: economic environment).
2. What is the difference between a “change in supply” and a change in “quantity
supplied”- the law of supply states that there is a positive relationship between price
and quantity supplied, leading to an upward-sloping supply curve. Sellers like to make
money, and higher prices mean more money! For example, let’s say that fishermen
notice the price of tuna rising. Because higher prices will make them more money,
fishermen spend more time and effort catching tuna. As a result, as the price rises, the
quantity of tuna supplied increases. Change in supply is a movement or shift in an entire
AC2103650
C13 Microeconomics
Module 5 Assignment
1. Difference between “change in demand” and a “change in quantity demanded”- It’s
hard to overstate the importance of understanding the difference between shifts in
curves and movements along curves. Remember, when we talk about changes in
demand or supply, we do not mean the same thing as changes in quantity demanded or
quantity supplied. A change in demand refers to a shift in the entire demand curve,
which is caused by a variety of factors (preferences, income, prices of substitutes and
complements, expectations, population, etc.) In this case the entire demand curve
moves left or right. A change in quantity demanded refers to a movement along the
demand curve, which is caused only by a chance in price. In this case, the demand curve
doesn’t move; rather, we move along the existing demand curve (Lumen, introduction
to business, module 2: economic environment).
2. What is the difference between a “change in supply” and a change in “quantity
supplied”- the law of supply states that there is a positive relationship between price
and quantity supplied, leading to an upward-sloping supply curve. Sellers like to make
money, and higher prices mean more money! For example, let’s say that fishermen
notice the price of tuna rising. Because higher prices will make them more money,
fishermen spend more time and effort catching tuna. As a result, as the price rises, the
quantity of tuna supplied increases. Change in supply is a movement or shift in an entire
