1.

Distinguish between : (i) Increase and expansion of demand. (ii) Decreas and contraction in demand.

Answer» <html><body><p></p>Solution :(i) Increase in demand is the increase in demand of a commodity owing to any other factor affecting the demand for the commodity other than the own price of the commodity <a href="https://interviewquestions.tuteehub.com/tag/whereas-2326610" style="font-weight:bold;" target="_blank" title="Click to know more about WHEREAS">WHEREAS</a> <a href="https://interviewquestions.tuteehub.com/tag/expansion-980011" style="font-weight:bold;" target="_blank" title="Click to know more about EXPANSION">EXPANSION</a> of demand is the increase in demand owing to a <a href="https://interviewquestions.tuteehub.com/tag/fall-983217" style="font-weight:bold;" target="_blank" title="Click to know more about FALL">FALL</a> in own price of the commodity. <br/>Increase in demand leads to a rightward shift in the demand curve whereas expansion of demand leads to a downward <a href="https://interviewquestions.tuteehub.com/tag/movement-1104563" style="font-weight:bold;" target="_blank" title="Click to know more about MOVEMENT">MOVEMENT</a> along the same demand curve.<br/>(ii) Decrease in demand is the fall in demand of a commodity owing to a change in other factors affecting the demand for the commodity other than the own price of the commodity whereas contraction in demand is the fall in demand of the commodity <a href="https://interviewquestions.tuteehub.com/tag/due-433472" style="font-weight:bold;" target="_blank" title="Click to know more about DUE">DUE</a> to an increase in own price of the commodity.<br/>Decrease in demand leads to a leftward shift in the demand curve whereas contraction in demand leads to an upward movement along the same demand curve.</body></html>


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