Question

With the help of a suitable diagram, distinguish between extension in demand and increase in demand.

Distinguish between the following:

Extension and Increase in demand

Answer 1

	Extention in demand		Increase in demand
(i)	When the quantity demanded increases due to a decrease in the price, other factors remain constant.	(i)	An increase in demand is defined as a rise in the demand for a good caused due to any factor other than the own price of the good.
(ii)	In this case, there is a downward movement along the same demand curve.	(ii)	There is a rightward shift in the demand curve.
(iii)	Price (₹) Quantity (in units) 10 100 8 120	(iii)	Price (₹) Quantity (in units) 10 100 10 120
(iv)		(iv)