Economy, asked by sheryljoannadass, 1 year ago

what is the difference between extension of demand and increase in demand

Answers

Answered by tish299792
4

An extension in demand refers to an increase in quantity demanded (a movement along the demand curve on a demand - supply diagram), whereas an increase in demand is a shift in a curve.

Although an increase in demand can be caused by multiple factors, such as income or fashion trends, an extension in demand can only be caused by either a shift in the supply curve or a change in price (which really would just be caused by the change in supply).

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