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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
If Coke and Fanta are close substitutes to each other, a rise in price of Coke will lead to ______ for Fanta.
What does an upward movement along the same demand curve indicate?
Explain the following diagram:
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With the help of a suitable diagram, distinguish between a change in quantity demanded and a change in demand.
Define contraction of demand (or decrease in quantity demanded).
What does a rightward shift of demand curve indicate?
The following table shows a change in the demand. Read the table carefully and answer the question that follows:
| Case I | Case II | ||
| Price (₹) | Quantity | Price (₹) | Quantity |
| 10 | 20 | 10 | 20 |
| 10 | 10 | 5 | 20 |
What type of change is it, decrease in demand or contraction in demand? Give a reason.
State whether the following statement is true or false. Give reasons.
An increase in the demand for a commodity is due to a fall in its price.
State whether the following statement is true or false. Give reasons.
A change in quantity demanded as a result of price change will imply a shift of the demand curve to the right.
