The main factor that impacts a change in the quantity of a product or service is the price of that product or service. A change in quantity demanded or supplied refers specifically to movements along the demand or supply curve caused by a change in price. For example, a decrease in price typically causes an increase in quantity demanded, while an increase in price causes a decrease in quantity demanded. This principle applies similarly to supply, where a change in price results in a change in the quantity supplied. Other factors may lead to a change in demand or supply themselves, causing the entire demand or supply curve to shift, but a change in quantity is directly caused by price changes only.
Key Points:
- Change in quantity demanded or supplied is caused by a change in the product's price.
- Price decrease leads to more quantity demanded; price increase leads to less quantity demanded.
- This is a movement along the curve, distinct from a shift caused by other factors.
- Other factors (e.g., income or technology) cause changes in demand or supply, not quantity change directly.
Thus, the single factor that directly impacts a change in the quantity of a product or service is its price.
