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Question
Identify the following as expansion, contraction, decrease or increase in demand.
| Price (₹) | Demand (units) |
| 5 | 100 |
| 4 | 120 |
Classify
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Solution
Expansion in Demand.
Explanation:
When the price falls from ₹ 5 to ₹ 4, the quantity demanded increases from 100 units to 120 units. This is known as expansion in demand, as it occurs due to a fall in the commodity's own price.
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