Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board
Chapter 3 -(A) Demand Analysis [Latest edition]
Q.3. Distinguish between
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 factors remain constant. | 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 remain constant.
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2. Movement: - The movement is downwards along the same demand curve. |
The movement is upward along the same demand curve |
