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Questions
What is meant by an increase in demand?
When does an 'increase' in demand take place?
Explain increase in Demand.
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Solution
Increased demand is a rise in commodity demand that results from a factor other than the item's price. More quantity is demanded at the same price.
RELATED QUESTIONS
As a result of rise in consumer's income, the demand curve for coarse-grain (inferior good) will:
With the help of a graph explain the increase in demand concept.
What does an upward movement along the same demand curve indicate?
With the help of a suitable diagram, distinguish between a change in quantity demanded and a change in demand.
Define contraction of demand (or decrease in quantity demanded).
The following table shows a change in the demand. Read the table carefully and answer the question that follows:
| Case I | Case II | ||
| Price (₹) | Quantity | Price (₹) | Quantity |
| 10 | 20 | 10 | 20 |
| 10 | 10 | 5 | 20 |
What type of change is it, decrease in demand or contraction in demand? Give a reason.
With the help of a suitable diagram, explain expansion in demand.
Explain the following diagram.
Give two factors responsible for the shift of the demand curve to the right.
State whether the following statement is true or false. Give reasons.
Contraction of demand is the result of a decrease in the number of consumers.
