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Change in Quantity Demanded (Expansion and contraction of demand)
When, as a result of change in price, the quantity demanded changes we say that there is change in quantity demanded. Increase in price leads to contraction of demand and decrease in price leads to expansion of demand.
Change in Demand (Shift in Demand Curve)
When factors other then price change then it is termed as shift in demand curve. Shift in demand curve can be rightward or leftward shift.
A rightward shift in the demand curve: (when more is demanded at each price) can be caused by a rise in income, a rise in the price of a substitute, a fall in the price of a complement, a change in tastes in favour of this commodity, an increase in population, and a redistribution of income to groups who favor this commodity.
A leftward shift in the demand curve: (when less is demanded at each price) can be caused by a fall in income, a fall in the price of a substitute, a rise in the price of a complement, a change in tastes against this commodity, a decrease in population, and a redistribution of income away from groups who favour this commodit
y.