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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.
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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.
Give two factors responsible for the shift of the demand curve to the right.
