Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board
Chapter 3 -(A) Demand Analysis [Latest edition]
Q.3. Distinguish between
Increase in demand and Decrease in demand.
Increase in Demand | Decrease in Demand |
a) An increase in demand refers to a rise in demand due to changes in other factors, price remaining constant. | a) A decrease in demand refers to fall in demand due to changes in other factors, price remaining constant. |
b) An increase in demand occurs when more are purchased at the same price and the same quantity is purchased at a higher price. | b) A decrease in demand occurs when less is purchased at the same price or the same quantity at a lower price. |
c) Increase in demand is a result of (1) Increase in income (2) Increase in price of substitutes (3) Decrease in price of complementary goods (4) Increase in population/ (5) When goods are in fashion. | c) Decrease in demand is a result of (1) Decrease in income. (2) Decrease in price of substitutes. (3) Increase in price of complementary goods. (4) Decrease in population. (5) When goods go out of fashion. |
d) When there is an increase in demand, the demand curve shifts to the right from DD to D1D2 as shown in the figure. | d) When there is decrease in demand the demand curve shifts to the left from DD to D2D2 as shown in the figure. |
