Distinguish between.
Increase in demand decrease in demand.
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Solution
Increase in demand decrease in demand.
INCREASE IN DEMAND |
DECREASE IN DEMAND |
Meaning: - Increase in demand occurs when. (a) More quantity is demanded at the same price (b) Same quantity (original quantity) is demanded at a higher price. |
Decrease in demand occurs when; (a) less quantity is demanded at the same price (original price) and (b) Same quantity (original quantity) is demanded at a lower price. |
Reasons: - It occurs due to changes in factors such as income, taste, preferences. Habits of the consumers and population etc. In favour of the commodity. |
It occurs due to changes in factors such as income, taste, preferences, habits of the consumers and population etc. Against the commodity. |
Shifts of the Demand Curve:- The demand curve shifts upwards (towards right) forming a new demand curve d1 d1 |
The demand curve shifts downwards (towards left) forming a new demand curve d2 d2 |
Concept: Demand
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