The quantity demanded of a good or service is simply the quantity that all buyers would purchase at a given price. The demand curves show us whether or not a good or service has an elastic or inelastic demand. Demand is the term we use to describe the number of goods and services that we demand. If we’re looking to buy something, we’re showing a demand for it.
Quantity Demanded vs Demand
The main difference between quantity demanded and demand is that they mean to express two different issues. Quantity demanded suggests the amounts of goods or services a person or organization will buy at a given process, while demand suggests the wish of the person or organization to buy certain goods and services.
In economics, quantity demanded refers to the amount of a product that consumers will buy at a certain price. The quantity demanded is a concept in economics that measures the quantitative value of goods or services that buyers are willing and capable of purchasing at a specified price during a specified period of a fixed time, after which the prices may differ.
Demand is an economic term used to describe the physical wish of buying some goods or services by a buyer who is willing to purchase them at a certain price. Demand helps us to study how changes in some factors, like the price of the good, affect the purchases of the good. Demand is always expressed as to how many units of good or service people are willing to buy at different prices.
Comparison Table Between Quantity Demanded and Demand
| Parameters of Comparison | Quantity Demanded | Demand |
| Meaning | Quantity Demanded equals the amount of product wanted by a customer to be purchased at a given time. | Demand refers to the wish the customer makes to buy a certain amount of product at a given price. |
| Change Recorded As | Any change in quantity demanded is recorded as an increase or increase in the quantity of the product demanded. | Any change in the demand leads either to an expansion or a contraction of the demand. |
| Measurement of Change | A shift in the demand curve shows the amount of change. | Movement along the demand curve shows the amount of change |
| Affected By | Affected by many factors other than price. | Mainly affected by price. |
| Effect of Price | There is no change in the quantity demanded with a price. | There is a change in demand with the price change. |
What is Quantity Demanded?
The meaning of quantity demanded is one of the most popular questions asked on this subject. It is important to fully understand the meaning of quantity demanded because it helps you to fully understand the meaning of the other terms on the demand curve. The quantity demanded is often referred to as the amount demanded.
The meaning of quantity demanded is the amount or a specific number of products or services that are demanded at an established price. It is the number of goods or services that customers are ready and committed to buying at a given price. The quantity demanded is an example of derived demand. The Law of Demand states that with an increase in prices, the quantity demanded of a goodwill decrease, and as the price decreases, the quantity demanded will increase.
This happens because, as the price of the good increases, the relative cost of the good compared to other substitutes increases as well as the relative cost of the good compared to the next best alternative increases. In general, as prices increase, the incentive to find substitutes and the incentive to find the next best alternative increase. As a result, the quantity demanded of this specific good decreases as the relative costs of those two things increase.
Quantity demanded is also affected by many factors other than price as well. Measuring change in quantity demanded is simple, and only a shift in the demand curve is seen.
What is Demand?
As per the term Demand, it is defined as the quantity of a commodity which the consumer is willing and capable to purchase at a given time and price in a given market, which is contingent on their income, prices of other commodities, their tastes, and preferences, their expectations about future income, prices.
Demand is one of the most important aspects of economic growth. It is related to the production of the goods or services that the individual needs. If the individual does not need them, then it is not considered as demand. Demand is also referred to as the quantity of the good that is produced.
The demand curve is represented by a graph. The graph is A representation of the relationship between the price of a good and the quantity demanded. A demand curve generally slopes downhill because of ceteris paribus, which means as the price of a good or service increases, people will be willing to buy less of it.
The shape of the demand curve depends on two factors. The first factor is the price of related goods. For example, the demand for apples will generally decrease as the price of oranges increases. The second factor is income. If people’s income increases, they can usually buy more of most goods or services.
Main Differences Between Quantity Demanded and Demand
- Quantity Demanded is a measurable factor, while demand is not measurable as it suggests only a wish expressed by a customer.
- Quantity demanded is affected by factors like preference, availability of substitute, price of substitute, etc., while demand demands the willingness to buy a product at a given price.
- A change in the quantity demanded of the same goods is recorded by a shift in the demand curve either up or down from the original position, while in the case of change in demand, only movement along the existing curve takes place
- Quantity demanded is a list of things to be purchased at a certain point in time, while demand is a list of things wanted to be bought by a customer at a given price.
- Quantity demanded does not change as once a list is made according to need, usually it is permanent, but demand is fickle and changes with time and need.
Conclusion
It is the law of supply and demand which is one of the most basic concepts of economics. The law gets its name from the relationship it describes. It describes the relationship between the supply of a good from the producer and the demand for that good in the market made by the customers. Demand is how much a customer wants a product, whereas quantity demanded is the amount of product demanded by the customer.
Although it may be confusing to understand the two terms, they have two very separate meanings. One can almost conclude that quantity demanded is a quantitative figure while demand is more a qualitative psychological aspect of the business. To understand both of them, proper knowledge is required.
References
- https://www.nascollege.org/e%20cotent%2010-4-20/dr%20abhi%20dutt/Managerial%20Economics%20(%20M.com%20IVth%20Sem.%20)%20-%20L5%20%2014-4.pdf
- https://www.sciencedirect.com/science/article/pii/S1573441286030106