1. DISTINGUISH BETWEEN EXPANSION OF DEMAND AND INCREASE IN DEMAND ?

Although the answers posted by your peers are right, nevertheless, if you wish, you can refer to the study material for a simply explanation worth 5 marks.
https://www.meritnation.com/cbse/class12-commerce/studymaterial/economics/introductory-microeconomics/theory-of-consumer-behaviour/338_1981_5805#slide4_demand-law-of-demand-movements-and-shifts-in-demand-curve-and-market-demand

  • 2
Expansion of demand : 1) This is due to change in own price of a commodity.
                                         2)  Decrease in own price of a commodity is the only reason.
                                         3)  Diagrammatically, it is shown as an downward movement.



Increase in demand : 1) This is due to change in determinants, other than own price of a commodity.
                                     2)  Several causes- increase in income, decrease in price of substitute goods, etc..
                                     3) ​Diagrammatically, it is shown as forward shift in demand curve.
  • 13
What are you looking for?