Question

True or False with Reasons:

If more is demanded at the same price or the same quantity is demanded at a higher price, it is known as extension of demand.

Answer 1

This statement is false.

Reason:

• Extension in demand refers to an increase in quantity demanded caused by a fall in the commodity’s own price.
• More demanded at the same price, or the same quantity demanded at a higher price, is an increase in demand.