Advertisements
Advertisements
Question
When the demand curve of a product shifts to the right, it represents a situation of ______.
Options
Increase in demand
Expansion in demand
Decrease in demand
Contraction in demand
Solution
When the demand curve of a product shifts to the right, it represents a situation of increase in demand.
Explanation:
When a product's demand curve shifts to the right, it indicates an increase in demand. This means that at the same price levels, consumers are now willing to purchase more of the product than before. This shift can occur due to factors such as an increase in consumer income, a rise in the product's popularity, or a decrease in the price of complementary goods.
APPEARS IN
RELATED QUESTIONS
Mr Vijay purchases 2 litres of milk per day when it is priced at ₹ 35 per litre. Suppose he has some guests at home and consequently he purchases 6 litres of milk on that day. What will you call it?
An increase in the price of electricity will cause an ______.
Match the following:
| Column I | Column II |
| A. Extension of demand. | (i) A larger quantity is demanded at the same price. |
| B. Contraction of demand. | (ii) A smaller quantity is demanded at the same price. |
| C. Increase in demand. | (iii) Fall in quantity demanded due to the rise in its price. |
| D. Decrease in demand | (iv) Rise in the quantity demanded of a commodity as a result of fall in the price. |
How does an increase in income affect the demand for a normal good?
With the help of a suitable diagram explain the extension in demand?
What is increase in demand?
What is decrease in demand?
State two types of related goods.
Explain the diagram given alongside.
The following table shows a change in the demand. Read the table carefully and answer the question that follows:
| Case I | Case II | ||
| Price (₹) | Quantity | Price (₹) | Quantity |
| 10 | 20 | 10 | 20 |
| 10 | 10 | 5 | 20 |
What type of change is it, decrease in demand or contraction in demand? Give a reason.
