VARIATION IN DEMAND CHANGES IN DEMAND

4. variation in demand
changes in demand
1.      Meaning: -
Variation in demand refers to changes in demand due to changes in price alone other factors remaining constant.

2.      Types: -
There are two types of variations in demand. They are –
(a)   Extension in demand and
(b)   Contraction of demand

3.      Movement : -
The movement is upward and downward along the same demand curve.

Changes in demand occur when quantity demanded changes due to changes in factors other than price.


There are two types of changes in demand.
 They are –
(a)   Increase in Demand
(b)   Decrease in Demand


The demand curve shifts upward and down wards forming new demand curve.