Question

Extension and contraction of demand for a good occurs as a result of
a. Inverse
b. Indirect
C. Positive
d. Both a and b

Answer 1

Answer:

The answer is option B

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Answer 2

d). Both a and b

Extension and contraction of demand for a good occurs as a result of Inverse and Indirect.

• The inverse link between an item's price and the quantity demanded over time is reflected by the demand curve's negative slope, which tracks downward from left to right. The income effect or substitution effect causes an increase or decrease in demand.
• Contraction is the result of a drop in quantity demanded owing to a rise in price, whereas expansion or extension is the result of an increase in quantity demanded due to a decrease in price. The demand curve itself sees the changes.
• The term "demand fluctuation" refers to the expansion and contraction of demand.
• Contraction of demand occurs when there is a decrease in quantity demanded as a result of an increase in price.
• Movement along the demand curve is caused by the expansion and contraction of demand: This remark is also accurate since when a commodity's price fluctuates, demand expands and contracts while other factors stay unchanged.

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