Distinguish between : Increase in demand and Expansion of demand
Q.2 (B) (ii) Distinguish between : Increase in demand and Expansion of demand
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Answer: Increase in demand vs Expansion of demand
| Basis | Increase in demand | Expansion of demand |
|---|---|---|
| Meaning | More is demanded at the same price, or the same quantity at a higher price. | More is demanded due to a fall in price. |
| Cause | Changes in other factors (income, tastes, population, prices of related goods). | Change in the price of the commodity itself. |
| Price | Price remains constant. | Price falls. |
| Demand curve | The whole demand curve shifts to the right. | Downward movement along the same demand curve. |
| Assumption | Ceteris paribus does not hold. | Other things remain constant. |
Doubtly AI
· 28 Oct 2026
AI-verified · Oct 2026
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