Asked by Erika Johnson on May 12, 2024
Verified
The terms decrease in demand and decrease in quantity demanded can be used interchangeably.
Decrease in Demand
A reduction in consumers' willingness or ability to buy a product at any given price.
Quantity Demanded
The total amount of a good or service that consumers are willing and able to purchase at a specific price level in a given period.
- Differentiate between a decrease in demand and a decrease in quantity demanded.
Verified Answer
AV
Anand VishnuMay 19, 2024
Final Answer :
False
Explanation :
Decrease in demand refers to a shift in the demand curve due to factors such as changes in consumer preferences, income, or prices of related goods. On the other hand, decrease in quantity demanded refers to a movement along the demand curve due to a change in the price of the good itself. Therefore, the two terms cannot be used interchangeably.
Learning Objectives
- Differentiate between a decrease in demand and a decrease in quantity demanded.