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Question
Distinguish between 'Expansion of demand and Increase in demand'.
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Solution
Extension of
demand refers to an increase in
quantity demanded due to a decrease in the own price of the commodity.
Increase
in demand refers to an increase in
quantity demanded not due to change in price but due to factors other than
price such as income, taste, fashion, expectations, etc.
Extension of
demand refers to an increase in
quantity demanded due to a decrease in the own price of the commodity.
Increase
in demand refers to an increase in
quantity demanded not due to change in price but due to factors other than
price such as income, taste, fashion, expectations, etc.
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