Question

extension and contractions of demand​

Answer 1

Answer:

• When the quantity demanded of a good rises due to the fall in price, it is called extension of demand

• when the quantity demanded falls due to the rise in price, it is called contraction of demand.

Answer 2

When the quantity demanded of a good rises due to the fall in price, it is called extension of demand and when the quantity demanded falls due to the rise in price, it is called contraction of demand.

Extension in demand refers to the increase in quantity danded due to the decrease in prices whereas contraction in demand refers to the decrease in quantity demanded due to the increase in prices