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प्रश्न
Differentiate between the expansion of demand and an increase in demand, using diagrams.
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उत्तर
| Sr. No. | Basis | Expansion in Demand | Increase in Demand |
| 1. | Meaning | When the quantity demanded rises due to a decrease in the price. Keeping other factors constant, it is known as an expansion in demand. | When the demand rises due to a favorable change in the other factors, at the same price, it is known as an increase in demand. |
| 2. | Effect on Demand Curve | There is a downward movement along the same demand curve. | There is a rightward shift in the demand curve. |
| 3. | Reason | It occurs with a decrease in the price of the given commodity. |
It occurs due to a favorable change in the other factors, like an increase in the prices of substitutes, a decrease in the prices of complementary goods, an increase in income in the case of normal goods, etc. |
Notes
It occurs to decrease in the price of the given commodity.
संबंधित प्रश्न
Explain the difference between (i) inferior goods and normal goods and (ii) cardinal utility and ordinal utility. Give example in each case.
Give any three factors that can cause a rightward shift of the demand curve.
Explain the following condition:
Movement along the same indifference curve.
What does an upward movement along the same demand curve indicate?
Match the following and select the correct option.
| Column A | Column B | ||
| (i) | Extention of demand | A. | Prices are expected to rise in future |
| (ii) | Decrease in demand | B. | Rise in price |
| (iii) | Contraction of demand | C. | Prices are expected to fall in future |
| (iv) | Increase in demand | D. | Fall in prices |
In order to encourage tourism in Goa, Government of India suggests to Indian Airlines to reduce air fare 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?
What causes a downward movement along a demand curve?
What causes an upward movement along a demand curve?
When does movement along the demand curve occur for a product?
A shift in the demand curve for a commodity can be caused by ______.
If more people attend movies because ticket prices decrease, this is an example of ______.
Which statement correctly describes a shift of the demand curve?
What should you check first to decide if a demand change is a movement or a shift?
