Question

Changes in quantity demand?? Please answer it quickly. Can we write extension and contraction in changes in quantity demand. Please answer it quickly

Answer 1

Answer:

yes extension and contraction in demand are the other names of changes in quantity but still they are diffent concepts

Explanation:

change in the quantity demanded results due to two factors :

• CHANGE IN THE PRICE OF GOOD

• FAVOURABLE AND UNFAVOURABLE CHANGES

Increase in the quantity demanded is due to favourable changes like increase in price of substitute goods or decrease in the price of complementary goods. Due to this the buyers of the other goods shift the this product while the price of the good remains constant. whereas extension in the quantity demanded is the increase in the demand of the good due to decrease in the own price of the good while other factors remain constant.

decrease in the quantity demanded and contraction in demand are the exact opposite of the above referred answer.