# Differentiate Between the Extension of Demand and an Increase in Demand, Using Diagrams. - Economics

Distinguish Between

Differentiate between the extension of demand and an increase in demand, using diagrams.

#### Solution

 Basis Expansion in Demand Increase in Demand 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. Effect on Demand Curve There is a downward movement along the same demand curve. ( See fig). There is a rightward shift ( See fig). in the demand curve. Reason It occurs to 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.
Concept: Movement Along and Shifts in the Demand Curve
Is there an error in this question or solution?
2014-2015 (March) Set 1

Share