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Questions
What is meant by expansion of demand?
Explain Extension in Demand.
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Solution
When the quantity demanded of a commodity rises due to a fall in its price, keeping other factors constant, it is called expansion of demand or increase in quantity demanded. Here a larger quantity is purchased due to the fall in the price.
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From the set of events/systems given in column A and the corresponding relevant fact given in column B, about China, choose the correct pair of statements:
| column A | column B |
| (1) Shift in the Demand Curve | (a) Increase in quantity demanded |
| (2) Movement along the demand curve | (b) Increase in price |
| (3) Shift in the Demand Curve | (c) Decrease in price |
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| Column A | Column B | ||
| (i) | Extention of demand | A. | Prices are expected to rise in future |
| (ii) | Decrease in demand | B. | Rise in price |
| (iii) | Contraction of demand | C. | Prices are expected to fall in future |
| (iv) | Increase in demand | D. | Fall in prices |
| Price in (₹) | Quantity demanded (units) |
| 20 | 100 |
| 25 | 70 |
The above example represents a situation of ______.
In order to encourage tourism in Goa, Government of India suggests to Indian Airlines to reduce air fare to Goa from four major cities - Chennai, Kolkata, Mumbai and New Delhi. If the Indian Airlines reduces the air fare to Goa, how will this affect the market demand curve for air travel to Goa?
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What causes an upward movement along a demand curve?
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