Question

In the following Question, read the statements and choose the correct alternative among those given below:

Statement 1: There is an upward movement along the same demand curve in case of expansion in demand. 

Statement 2: Expansion in demand is also known as Extension in Demand or Increase in Quantity Demanded.

Options

• Both the Statements are true.

• Both the Statements are false.

• Statement 1 is true and Statement 2 is false.

• Statement 2 is true and Statement 1 is false.

Answer 1

Statement 2 is true and Statement 1 is false.

Explanation:

Statement 1 is false: expansion in demand is a downward movement along the same demand curve, usually caused by a fall in price. Statement 2 is true: it is also called extension in demand or an increase in quantity demanded.