ECONOMICS (CBSE/UGC NET)

ECONOMICS

DEMAND

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Movement along the same demand curve shows:
A
Expansion of demand
B
Expansion of supply
C
Expansion and contraction of demand
D
Increase and decrease of demand
Explanation: 

Detailed explanation-1: -This may occur because of a change in demand conditions. The factors affecting demand are assumed to be held constant. A change in price leads to a movement along the demand curve and it referred to as a change in quantity demanded. Hence option A is the correct answer.

Detailed explanation-2: -When the price of the commodity falls, the quantity demanded rises. It leads to the downward movement of the demand curve. It is also known as expansion of demand.

Detailed explanation-3: -Movement on the same demand curve shows extension or contraction of demand.

Detailed explanation-4: -Expansion of demand refers to the period when quantity demanded is more because of the fall in prices of a product. However, contraction of demand takes place when the quantity demanded is less due to rise in the price o a product.

There is 1 question to complete.