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Question
Distinguish between:
Expansion of demand and Contraction of demand.
Distinguish Between
Solution
| Expansion of demand | Contraction of demand | |
| 1. | Expansion of demand refers to a rise in demand only due to a fall in price. | Contraction of demand refers to a fall in demand only due to a rise in price. |
| 2. | Expansion of demand takes place solely due to a fall in price. All other factors affecting demand remain constant. | Contraction of demand takes place solely due to a rise in price. All other factors affecting demand remain constant. |
| 3. | Expansion of demand is shown by a downward movement on the same demand curve. | The contraction of demand is shown by an upward movement on the same demand curve. |
| 4. | Expansion of Demand: |
Contraction of Demand: |
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