What is the difference between demand and quantity demanded?
Demand vs Quantity Demanded
Demand vs Quantity Demanded: Demand shows the relationship between all the market prices and quantities of demand while quantity of demand shows the relationship between the specific price and quantity of demand.
Quantity of demand: Relationship between a specific price and quantity of demand.
Demand: Relationship between all the market prices and quantities of demand
In other words, demand means when the price of the particular good remains unchanged, the relationship between the demand of the goods and other factors (the price of the complementary and substitute goods, consumer income, consumer preference, future expectations of the consumers, government decisions, and so on) that affect the demand. Quantity of demand or quantity demanded means the number of units demanded by the consumers at given market prices when the other factors influence to demand remain unchanged.
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Demand vs Quantity Demanded
Comparison Table: difference between demand and quantity demanded
| Demand | Quantity Demanded |
| Demand shows the relationship between all the market prices and quantities of demand. | Quantity demanded means the number of units of a good that consumers are going to demand under a given market price. |
| Demand is illustrated by the entire demand curve | Quantity of demand is illustrated by a point of the demand curve |
| Change in demand is presented by the shift of the entire demand curve | Change in the quantity demand is presented as the movement of the point along the demand curve. |
| Using demand statistics, we can determine how many quantities are demanded by the consumers. | Using the quantity of demand statistics, we can determine the quantity of goods demanded by a consumer at a certain price. |
| Demand is changed by the non-price determinants | Quantity of demand is changed by the price of a particular product. |
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Let’ define the demand and quantity of demand
What is demand?
Demand shows the relationship between all the market prices and quantities of demand
The theory of “demand” explains the relationship between demand for a particular good and determinants of the demand (the price of the complementary and substitute goods, consumer income, consumer preference, future expectations of the consumers, government decisions, and so on) other than the price of the particular good. These factors cause the rightward or leftward shift of the demand curve.
What is quantity demanded?
Quantity demanded shows the relationship between the specific price and quantity of demand.
Quantity of demand or quantity demanded means, in a specific period, when the other factors that influence demand constant, the relationship between demand quantity and the price of the particular good. We can show that relationship as the function of follows,
Qd = f (P)
As usual, there is a negative relationship between price and quantity demanded for a good. If the price increases, the quantity of demand will be decreased and vice versa.
The reason for this negative relationship is the income effect and the substitution effect. But in some special situations, like Giffen goods, there can be a positive relationship between price and quantity demand of a good.
Change in demand vs change in quantity demanded
Change in demand
Demand shows the relationship between all the market prices and quantities of demand. So, Demand is illustrated by the entire demand curve. Change in demand is presented by the shift of the entire demand curve.
Demand is changed by the non-price determinants (the price of the complementary and substitute goods, consumer income, consumer preference, future expectations of the consumers, government decisions, and so on). These factors cause the rightward or leftward shift of the demand curve
Let’s discuss about these factors.
Causes for change in demand
Consumer preference
If consumer preference is increased, people increase the demand for a particular good. So, increasing preference for a particular good will shift the demand curve to rightward. Let’s assume that, the following is the demand for milk in United Kingdom.
Assume that the D1 demand curve presents the demand for milk in United Kingdom, before increasing the customer preference. As a result of the consumer preference increase for milk, the demand curve has shifted to the right (D2). Now customers demand more milk than before at the same price level. So, suppliers can supply more milk. That is how the concept of demand affects to the activities of the customers and producers.
Prices of substitute goods.
When prices of substitute goods are increasing, the particular good will be more profitable for the consumers. As an example, we can say the price of coffee and tea. Coffee and tea are substitute goods. When the price of coffee is increasing, tea will be more profitable to the consumers. As a result of it, the demand curve of the tea will be shifted rightward as follows.
Prices of complementary goods.
When prices of complementary goods are increasing, demand for the particular good will be decreased. Because consumers when consumers decrease the demand for complementary goods, decrease demand for the particular good also. As an example, we can say the price of sugar and tea. When the price of sugar is increasing, demand for tea will be decreased. As a result of it, the demand curve of the tea will be shifted leftward as follows.
Consumer income
There is a positive relationship between income level and demand for a normal good. This means if income is increasing, people increase the demand for a normal good. Assume that tea is a normal good. As a result of the income increase of the customers, the demand curve of tea will be shifted rightward as follows.
Future expectation
One of the determinants of demand is future expectations. When customers expect the price of a good will be increased in the future, they increase the current demand. As a result of it, the demand curve of the good will be shifted rightward.
Change in quantity demanded
Quantity demanded means the number of units of a good that consumers are going to demand under a given market price. Therefore, quantity of demand is illustrated by a point of the demand curve.
What are the factors affecting the quantity demanded?
Quantity of demand is changed by the price of a particular product. Change in the quantity demand is presented as the movement of the point along the demand curve.
We can identify the relationship between price and quantity of demand for a particular good using a graph. Assume that following is the “demand curve for the wheat in the United Kingdom for a week”.
In this graph, if price is increased from 1GBP to 2GBP, the quantity demanded will be moved from point B to point A along the demand curve. In other words, there will be an increase in the quantity demanded.
