### ECO 202 Cram Kit Bundle

Unemployment
Types of Unemployment
Unemployment Measures
Okun’s Law
Misery Index
Economic Measures
Consumer Price Index (CPI)
Gross Domestic Product (GDP)
Gross National Product (GNP)
Potential Output
Money Supply
Stock vs. Flow
Economic Models
Supply & Demand
Aggregate Supply & Aggregate Demand
Economic Gaps
Interest Rates
Interest Rates
Loanable Funds
Comprehensive

# Quantity Demanded vs. Demand

Quantity Demanded is the amount of a good or service that a consumer is willing to purchase at a given price.

QUANTITY DEMANDED IS NOT THE SAME AS DEMAND. This is a huge mistake people make in this course. What's the difference?

Demand is the relationship between price and quantity demanded and is usually shown as a line of a graph. Quantity demanded is a single point on that line.

## Changes in Quantity Demanded

Remember that Quantity Demanded and Demand are different things. You will have questions on your exam that give you a scenario, and you have to know whether it affects Demand or Quantity Demanded.

Holding all else constant, quantity demanded is ONLY changed by the price of a product.

Using our example from above, let’s say that the price of white sneakers is \$200. Now, the seller of the shoes has decreased the price of shoes to \$10 dollars. What happens to the quantity demanded?

We know that at a price of \$200, Chad wants 1 pair of shoes. We also know that at a price of \$10, Chad wants 5 pairs of shoes. Therefore, Quantity Demanded increases by 4. We can also use the graph to solve this.