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Difference btw expansion of demand & …

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Difference btw expansion of demand & contraction of demand

    • Posted by Manjeet Sikarwar 6 years, 11 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Gaurav Seth 6 years, 11 months ago

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    Difference between the Expansion of demand and Contraction of demand is as follows:

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    Expansion of a demand curve  Contraction of a Demand curve
    It is characterised with movement along a demand curve, where consumer moves to the right or downward part of the same demand curve It is characterised with movement along a demand curve, where consumer moves to the left or upward part of the same demand curve
    It is due to the fall in the price of the commodity, keeping other factors of demand as constant It is due to the rise in the price of the commodity
    Expansion of demand can be stated as the rise in the demand of the commodity due to the fall in the respective price. Contraction of demand can be stated as the fall in the demand of the commodity due to the rise in the respective price.

                     

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