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Question
Identify the following as expansion, contraction, decrease or increase in demand.
| Price (₹) | Demand (units) |
| 5 | 20 |
| 5 | 24 |
Classify
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Solution
Increase in Demand.
Explanation:
When the price remains constant at ₹ 5, but the quantity demanded increases from 20 units to 24 units, it is known as increase in demand. It occurs due to favourable changes in factors other than the commodity's own price.
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