EXTENSION OF DEMAND CONTRACTION OF DEMAND

extension of demand
contraction of demand
1.      Meaning: -
Extension of demand is a case of variation of demand. It takes place when quantity demanded is more due to a fall in price alone. Other factor remaining constant.

2.      Movement: -
The movement is downwards along the same demand curve.



Contraction is also a case of variation of demand. It takes place when quantity demanded is less due to rise in price alone. Other factors remaining constant.


The movement is upward along the same demand curve