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प्रश्न
Differentiate between extension and contraction of demand.
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उत्तर
| Sr. No. | Basis | Extension of Demand | Contraction of Demand | ||||||||||||
| 1. | Meaning | Other things being equal, when a fall in price raises demand for a commodity, it is called an extension of demand or increase in the quantity demanded. | Other things being the same, when demand for a commodity falls as a result of a rise in its price, it is called a contraction of demand or decrease in quantity demanded. | ||||||||||||
| 2. | Demand curve | Under it, there is a downward movement along the same demand curve (from A to B), as shown in Figure, but the consumer remains on the same demand curve.  |
Under it, there is upward movement along the same demand curve (from B to A as shown in Figure).  |
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| 3. | Example |
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| 4. | Cause | It is caused by a fall in the price of the commodity; other things remain the same. | It is caused by a rise in the price of the commodity only. |
संबंधित प्रश्न
What is meant by the contraction in demand?
What is an expansion of demand?
Explain the following diagram:
Give two reasons for the shift of the demand curve towards the left.
In order to encourage tourism in Goa, Government of India suggests Indian Airlines to reduce air fares to Goa from four major cities: Chennai, Kolkata, Mumbai and New Delhi. If the Indian Airlines reduces the air fare to Goa, how will this affect the market demand curve for air travel to Goa?
Define contraction of demand (or decrease in quantity demanded).
What causes an upward movement along a demand curve?
What does a rightward shift of demand curve indicate?
With the help of a suitable diagram, explain expansion in demand.
Give two factors responsible for the shift of the demand curve to the right.
