Which of the following best describes the difference between a change in quantity demanded and a change in demand?

• A. A change in quantity demanded refers to movement along the demand curve due to a change in the good's price, while a change in demand refers to a shift of the entire demand curve due to factors other than price.
• B. A change in quantity demanded results in a parallel shift of the demand curve, while a change in demand results in movement along the curve.
• C. A change in quantity demanded occurs when supply changes, while a change in demand occurs when production costs change.
• D. A change in quantity demanded is caused by changes in consumer income, while a change in demand is caused by changes in the good's price.

Answer: (A)

Verified step by step guidance

1. Understand that 'quantity demanded' refers to the specific amount of a good consumers are willing and able to buy at a particular price, holding all else constant.
2. Recognize that a 'change in quantity demanded' means movement along the same demand curve caused solely by a change in the good's own price.
3. Know that a 'change in demand' means the entire demand curve shifts either to the right (increase in demand) or to the left (decrease in demand) due to factors other than the good's price, such as changes in consumer income, tastes, prices of related goods, expectations, or number of buyers.
4. Distinguish between these two concepts by noting that a change in quantity demanded is a movement along the curve, while a change in demand is a shift of the entire curve.
5. Apply this understanding to evaluate the given options and identify the statement that correctly describes this fundamental difference.