Question

The movement on or along the given demand curve is known as____
a. Extension and contraction of demand.
b. shifts in the demand.
c. increase and decrease in demand.
d. all the above

Answer 1

(a)The movement on or along the given demand curve refers to extension and contraction of demand.

It is all about the shape of the curve of the graph that reflects the entire situation.

Movement along the demand curve can be easily understood by the variation in quantity as demanded on the basis of price and ceteris paribus.

Extension is caused when there is a rise in demand due to fall in price. Contraction takes place when the demand decreases due to high price rate.