Question 28 of 41
Q.Distinguish between extension and contraction of demand.
Puducherry TnboardTamil Nadu HSC First Year (DGE) Commerce Board 2023Subjective· 3mImportance★★★★★
68% · 28/41 Questions
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Start your 14-day free trial to unlock the full solution →Extension = more is demanded when price falls; contraction = less is demanded when price rises. Both are movements along the same demand curve caused by the good's own price, not shifts of the curve.
In the Tamil Nadu HSC Class-11 Economics syllabus, this distinction clarifies how quantity demanded responds to a change in the good's own price, keeping other factors constant.
| Basis | Extension of Demand | Contraction of Demand |
|---|---|---|
| Meaning | Quantity demanded rises | Quantity demanded falls |
| Cause | Fall in the good's own price | Rise in the good's own price |
| Movement | Downward movement along the same demand curve | Upward movement along the same demand curve |
| Other factors | Income, tastes, prices of related goods remain constant | Same — remain constant |
| … |
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