Advertisements
Advertisements
Question
With the help of a suitable diagram, explain expansion in demand.
Advertisements
Solution
When the demand for a commodity rises due to a fall in its price, it is called expansion in demand.
Diagrammatic Explanation: In the diagram, when price falls from OP to OP1, demand expands from OQ to OQ1.

APPEARS IN
RELATED QUESTIONS
If Coke and Fanta are close substitutes to each other, a rise in price of Coke will lead to ______ for Fanta.
With the help of a graph explain the increase in demand concept.
What is an expansion of demand?
Define decrease in demand.
Give two reasons for the shift of the demand curve towards the left.
Define contraction of demand (or decrease in quantity demanded).
What causes a downward movement along a demand curve?
What does a rightward shift of demand curve indicate?
Explain the following diagram.

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