Expansion of demand and Contraction of demand.
|Expansion of demand||Contraction of demand|
|1.||Expansion of demand refers to a rise in demand only due to a fall in price.||Contraction of demand refers to a fall in the demand only due to a rise in price.|
|2.||Expansion of demand takes place solely due to falling in price. All other factors affecting demand remain constant.||Contraction of demand takes place solely due to a rise in price. All other factors affecting demand remain constant.|
|3.||Expansion of demand is shown by a downward movement on the same demand curve.||Contraction of demand is shown by an upward movement on the same demand curve.|
Concept: Factors of Demand
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