Economy, asked by komal7263, 1 year ago

distinguish between extension and increase in demand in points a

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Answered by Anonymous
1
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Extension in demand ✨

➡️ Extension of demand refers to increase in quantity demanded to decrease in own price of the commodity .

➡️ Extension of demand is studied on the adoption that other determinants of demand (other than own price of the commodity )are constant .

➡️ Extension Of demand leads to downward movement along the demand curve from left to right .


Increases in demand ✨

➡️ Increases In demand refers to increase in quantity demand even when own price of the commodity is constant .

➡️ Increases In demand is studied on the assumption that own price of the commodity is constant .

➡️Increase in demand leads to forward shift in demand curve .
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