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Movement along the Demand Curve and Shift of the Demand Curve - Change in Quantity Demanded: Movement along the Demand Curve

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Topics

  • Introduction
  • Types of Change
  • Example Table
  • Diagrammatic Explanation
  • Real-Life Application
  • Key Point Summary
CISCE: Class 12

Introduction

When people buy more or less of something only because its price changes (and nothing else changes), it is called a change in quantity demanded.

CISCE: Class 12

Types of Change

  1. Expansion of Demand: If price goes down, people buy more units—this is called expansion.
  2. Contraction of Demand: If price goes up, people buy fewer units—this is contraction.
CISCE: Class 12

Example Table

Price of Apples (₹/kg) Quantity Demanded (kg/week)
100 1
90 2

When price falls from ₹100 to ₹90, demand rises from 1 kg to 2 kg—an expansion of demand.

Price of Apples (₹/kg) Quantity Demanded (kg/week)
70 6
80 4

When price rises from ₹70 to ₹80, demand falls from 6 kg to 4 kg—a contraction of demand.

CISCE: Class 12

Diagrammatic Explanation

  • The downward movement from a higher point to a lower point on the curve is expansion (buying more at a lower price).
  • The upward movement from a lower point to a higher point is contraction (buying less at a higher price).
CISCE: Class 12

Real-Life Application

Think of a local market sale: If mangoes become cheaper, customers buy more. If they get expensive, people buy less.

Key Point Summary

  • Expansion: Price falls, and quantity demanded rises (down the demand curve).
  • Contraction: Price rises, quantity demanded falls (up the demand curve).
  • Movement along the demand curve shows changes in quantity demanded due to price, not because of other reasons like income or preferences.

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