Question 34 of 39
Q.Distinguish between expansion in demand and increase in demand.
Maharashtra MsbshseMaharashtra HSC (MSBSHSE) Board 2026Subjective· 2mImportance★★★★★
87% · 34/39 Questions
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Start your 14-day free trial to unlock the full solution →Expansion in demand = more bought because price fell → movement along the curve. Increase in demand = more bought at the same price because a non-price factor changed → the curve itself shifts right.
This distinction matters because it separates the effect of a change in the good's own price (movement) from the effect of a change in the conditions of demand (shift).
| Basis | Expansion in Demand | Increase in Demand |
|---|---|---|
| Cause | Fall in the price of the good itself | Change in a factor other than price (income, tastes, number of buyers, price of related goods) |
| Price | Price falls | Price remains the same |
| Curve | Movement downward along the same demand curve | Rightward shift of the entire demand curve |
| Other factors | Assumed constant | One or more of them change |
| Diagram | Same curve, lower point | A new curve to the right |
| … |
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