7. Other things being equal, with a fall in price, a rise in demand
is known as ...
a. Contraction in demand b. Extension in demand
c. Increase in demand
d. decrease in demand
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Extension in demand:
(i) Other things being constant, when with a fall in price, demand for a commodity rises, it is called extension in demand.
(ii) It is caused due to fall in price of the commodity.
(iii) There is a downward movement along the same demand curve from left to right.
Increase in demand:
(i) When at a given price larger quantity is purchased due to change in factors, other than price of the same commodity, it is called increase in demand.
(ii) It is caused by change in other factors affecting demand price remaining the same.
(iii) Consumers demand curve shifts to the right.
Explanation:
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