Extension and contraction

EXTENSION AND CONTRACTION OF DEMAND (Change In Quantity Demanded)

by • 19/06/2011 • B.COM PART 1 EconomicsComments (0)476

Extension and contraction of demand occurs to change in the price of the respective commodities.

“ Extension” means that there is an increase in the quantity of the good purchased due to a fall in its price. “ Contraction” means that there is decrease in demand of the good due to the rise in its price.

Price Of Good Quantity Demanded
5 Rs 10 Rs
10 Rs

5 Rs

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