Question

Amit buys 1 kg of mangoes at 120 per kg. Other things remaining constant, when the price of mangoes falls to 90 per kg, he buys 2 kg of mangoes. Amit’s choice in the given situation shows which concept?

Options

• Demand schedule

• Market demand

• Contraction of demand

• Expansion of demand

Answer 1

Expansion of demand

Explanation:

The concept referred to here is expansion of demand. It means an increase in the quantity demanded resulting from a fall in price, assuming all other factors remain unchanged. This is also described as a downward movement along the demand curve.