Question

Match the items of List-I with those in List-II and select the correct code for the answer

Answer 1

a) Contraction of demand matches with price change effect.Contraction of demand refers to decrease in quantity demanded of a commodity due to rise in the own price.

b) Decrease in demand matches with non-price change effect.Decrease of demand refers to decrease in quantity demanded of a commodity at its existing price. It is caused by he factors other than own price of the commodity.

c) Increase in demand matches with shifts in demand curve as increase in demand causes a forward shift to the left of the demand curve. Increase of demand refers to increase in quantity demanded of a commodity at its existing price. It is caused by he factors other than own price of the commodity.

d)Expansion of demand means a movement along the demand curve will occur when the price of the good changes and the quantity demanded changes in accordance to the original demand relationship