We all have read economics in our early school days. The concept of functions of banks, demand and supply, and many more were taught to develop a basic understanding of the person with respect to the economic system of a country. But some of these concepts become really confusing if not explained well.
The prime examples of such concepts are the concept of Demand and Quantity Demanded. While these two are widely used interchangeably, their wrong use can create havoc in certain situations. Non-arguably, these terms are very related to one another but still carry a lot of distinctions. Therefore, it becomes crucial for one to know the exact differences that lie between these two.
Demand vs Quantity Demanded
The main difference between Demand and Quantity Demanded is that the former refers to the intention or willingness showed by a buyer with respect to buying any goods or service at any price as determined by the market or the seller, but on the contrary, Quantity Demanded refers to the exact number or amount that the customer intends to buy for a particular price only.
Demand in simple words denotes the quantity or amount of any goods or service which the customer intends to buy at any given price. This is counted for a specific period of time, like a month or a year. It can be shown on a graph in which the two axes happen to be the price of the goods and the quantity of the goods.
On the contrary, Quantity Demanded is just a point on the demand graph that we mentioned earlier. It is the one point at which a specific quantity is being demanded a specific amount at a specific time period. Unlike Demand, this is a more definite concept and clarifies the on-point willingness and capacity of a person to buy a certain thing.
Comparison Table Between Demand and Quantity Demanded
| Parameters of Comparison | Demand | Quantity Demanded |
| Meaning | It denotes the quantity or amount of any goods or service which the customer intends to buy at any given price. | It is just a point on the demand graph that we mentioned earlier. It is the one point at which a specific quantity is being demanded. |
| Appearance | It appears like a line on which multiple quantities for different prices exist. | It appears like a dot only and represents only one particular quantity. |
| Interrelation | Quantity Demanded is a point that exists on this concept. | This point exists on a line called Demand. |
| Reflects | It reflects all the available quantities demanded at different price levels. | It reflects only one particular quantity for a particular price. |
| Affected by | This concept is mostly affected by things other than price, such as the income, etc., of the buyer. | On the contrary, this can be affected by the price of the goods or services only. |
| Results in | If the demand changes, it will affect the shape of the demand curve eventually. | Change in the Quantity Demanded will bring differences in shape and movement in the demand curve also. |
What is Demand?
Demand in simple words denotes the quantity or amount of any goods or service which the customer intends to buy at any given price. This can be affected by many features such as income, inflation, etc., and makes it really easy for one to understand the economic dynamics of a certain place.
It appears like a line on which multiple quantities for different prices exist. The Quantity Demanded is a point that exists on this concept. It reflects all the available quantities demanded at different price levels and time periods. It also defines that in what way people are ready to spend their money on the destined goods.
This concept is mostly affected by things other than price, such as the income, etc., of the buyer. Not only this, but the change in the taste and preferences of the consumer brings a change into demand as well. If the demand changes, it will affect the shape of the demand curve eventually.
What is Quantity Demanded?
Quantity Demanded is just a point on the demand graph that we mentioned earlier. It is the one point at which a specific quantity is being demanded a specific amount at a specific time period. This point denotes the exact amount that is desired by the consumer and the exact price that the consumer is willing to pay.
It appears like a dot on the demand graph and represents only one particular quantity. This point exists on a line called Demand. It reflects only one particular quantity for a particular price and specific time period. This point happens to be a tiny piece of the puzzle.
As far as the effects upon this concept are concerned, this can be affected by the price of the goods or service only. Change in the Quantity Demanded will bring not only difference in shape but a movement in the demand curve also. And all these changes, as a result, alter the demand graph from its original position.
Main Differences Between Demand and Quantity Demanded
- Demand in simple words denotes the quantity or amount of any goods or service which the customer intends to buy at any given price. While on another side, Quantity Demanded is a term that is just a point on the demand graph that we mentioned earlier. It is the one point at which a specific quantity is being demanded a specific amount
- It appears like a line on which multiple quantities for different prices exist. While on another side, Quantity Demanded is a term that appears like a dot only and represents only one particular quantity.
- The Quantity Demanded is a point that exists on the Demand line.
- It reflects all the available quantities demanded at different price levels and time periods. While on another side, Quantity Demanded is a term that reflects only one particular quantity for a particular price and specific time period.
- This concept is mostly affected by things other than price, such as the income, etc., of the buyer. While on another side, a change in Quantity Demanded will bring not only a difference in shape but a movement in the demand curve also.
Conclusion
Both terms Demand and Quantity Demanded are very crucial in terms of economics. These two can be differentiated on the demand curve very easily as one is the crux of the whole curve while another is just a point in between.
Demand consists of the collection of all the quantities that can be shown on one demand curve, while on the other side, Quantity Demanded is that one exact point when a specific demand of a specific quantity is shown for a specific amount of time.
References
- https://www.jstor.org/stable/2525681
- https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2404878