1. Why is displacement current called displacement current, when it is just a rate of change in electric flux w.r.t. time which produces a current and in turn a circulating magnetic field (Ampere's Law)? What is being displaced here without any sort of charges being displaced (As free space has zero degree of polarizability (χe = εr - 1))?

While in a dielectric material the bound charge are displaced with an applied electric field, and hence gives rise to a displacement current (with changing electric field).

2. Excerpt from wikipedia: "D=ε0E+P. In this equation, D is the field due to the remaining charges, known as "free" charges".

If D is the field due to free charges, then rate of change of D w.r.t. time must be displacement current density due to free charges, right?

Doesn't this contradict the statement: "Displacement current has the units of electric current density, and it has an associated magnetic field just as actual currents do? However it is not an electric current of moving charges, but a time-varying electric field"?

I do understand that even a conductor contains both "fixed" as well as "free" charges.

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