Question

Expansion of Demand is associated with ______.

Options

• Rise in Price, Rise in quantity demanded

• Fall in Price, Fall in quantity demanded

• Fall in Price, Rise in quantity demanded

• Rise in Price, Fall in quantity demanded

Answer 1

Expansion of Demand is associated with fall in Price, Rise in quantity demanded.

Explanation:

Expansion in demand means quantity demanded rises because the good’s own price falls. A price rise with lower quantity demanded is contraction, not expansion.