extension of demand
|
contraction of demand
|
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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
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EXTENSION OF DEMAND CONTRACTION OF DEMAND
