Question 1.5: Which arrow on the graph shows a change in Quantity Demanded? OA OB Both Check Answer Change in Demand vs. Quantity Demanded The distinction between a change in demand and a change in the quantity demanded is an important one. A change in the quantity demanded of a good is caused by a change in the price of the good, therefore, "all else equal" creates a ceteris paribus condition. As such, a change in the quantity demanded of a good is represented by a movement along the demand curve. This is in contrast to a change in demand which is caused by a change in anything that affects demand other than Price (5 per gallon) Change in Demand vs. Quantity Demanded The distinction between a change in demand and a change in the quantity demanded is an important one. A change in the quantity demanded of a good is caused by a change in the price of the good, therefore, "all else equal" creates a ceteris paribus condition. As such, a change in the quantity demanded of a good is represented by a movement along the demand curve. This is in contrast to a change in demand which is caused by a change in anything that affects demand other than the price (e.g. income or the price of a related good changes). This occurs when the ceteris paribus assumption does not hold and the demand curve shifts to a new position. Price (s per gallon) 60 140 160 80 100 120 Quantity (Millions of Gallons) Question 1.5: Which arrow on the graph shows a change in Quantity Demanded? OA OB Both Check Answer Change in Demand vs. Quantity Demanded The distinction between a change in demand and a change in the quantity demanded is an important one. A change in the quantity demanded of a good is caused by a change in the price of the good, therefore, "all else equal" creates a ceteris paribus condition. As such, a change in the quantity demanded of a good is represented by a movement along the demand curve. This is in contrast to a change in demand which is caused by a change in anything that affects demand other than Price (5 per gallon) Change in Demand vs. Quantity Demanded The distinction between a change in demand and a change in the quantity demanded is an important one. A change in the quantity demanded of a good is caused by a change in the price of the good, therefore, "all else equal" creates a ceteris paribus condition. As such, a change in the quantity demanded of a good is represented by a movement along the demand curve. This is in contrast to a change in demand which is caused by a change in anything that affects demand other than the price (e.g. income or the price of a related good changes). This occurs when the ceteris paribus assumption does not hold and the demand curve shifts to a new position. Price (s per gallon) 60 140 160 80 100 120 Quantity (Millions of Gallons)