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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 does an upward movement along the same demand curve indicate?
When the demand curve of a product shifts to the right, it represents a situation of ______.
There are train and bus services between New Delhi and Jaipur. Suppose the train fare between the two cities comes down. How will this affect the demand curve for bus travel between the two cities?
What is meant by an increase in demand?
Define contraction of demand (or decrease in quantity demanded).
What causes an upward movement along a demand curve?
What causes a downward movement along a demand curve?
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.
Explain the following diagram.
