What is extension of demand and increase in demand?
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What's the difference between increase of demand and extension of demand?
Originally Answered: What is the difference between expansion in demand and increase in demand?
Increase in demand at the same price due to change in other determinants of the demand curve.. In such a case a shift takes place in the demand curve. An increases in demand takes place due to following reasons : when consumer income rises.
the fashion for a good increase, or
tastes and preferences becomes more favourable for the good;
prices of the substitutes of the good in question have risen;
propensity to consume of the people has increased; or
owing to the increase in population and as a result of expansion of the market, the number of consumers of the good has increased.
Expansion in Demand: Expansion in demand refers to a rise in the quantity demanded due to a fall in the price of commodity. other factors remaining constant. It leads to a downward movement along the same demand curve
Originally Answered: What is the difference between expansion in demand and increase in demand?
Increase in demand at the same price due to change in other determinants of the demand curve.. In such a case a shift takes place in the demand curve. An increases in demand takes place due to following reasons : when consumer income rises.
the fashion for a good increase, or
tastes and preferences becomes more favourable for the good;
prices of the substitutes of the good in question have risen;
propensity to consume of the people has increased; or
owing to the increase in population and as a result of expansion of the market, the number of consumers of the good has increased.
Expansion in Demand: Expansion in demand refers to a rise in the quantity demanded due to a fall in the price of commodity. other factors remaining constant. It leads to a downward movement along the same demand curve
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