Question

Discuss with the help of diagram the concept of extension of demand.

Answer 1

When the quantity demanded of a commodity rises due to fall in its own price, other things remaining the same, it is called 'rise in quantity demanded' or 'expansion of demand'. For example, as shown in the Table, when the price of apples falls from ₹100 per kg to ₹90 per kg, a consumer's purchase of apples rises from 1 kg to 2 kg per week. This is an expansion of demand.