Economics

Extension And Contraction Of Demand In Economics

Contraction of Demand:

Demand curve shifts upwards with an increase in demand. Similarly, when demand decreases, it shifts downwards left of the initial demand curve. This is shown in the below diagram:

Extension and contraction of demand Extension of Demand: If the price decreases from P1 to P2, then the demand increases (rises) from Q1 to Q. This growth of the demand is called Extension of Demand. For example, if the prices of Hilsha fish falls in the local markets due to a higher yield or for government regulation on their exports to other countries, their local demand automatically increases. Now even poor can afford and enjoy delicious fish also.

┬áContraction of Demand: If the price increases from P1 to P3, then the demand decreases from Q1 to Q3. This fall of the demand is called Contraction of Demand. For example, if the prices of mangoes rise then their demand in the market decreases. It is because, with the higher prices of mangoes, the ordinary people can’t afford to buy with their limited income. As a result, the demand for mangoes automatically falls down.

Extension and contraction of demand

In the above diagram the quantity demanded and price of a commodity are shown along OX and OY axes respectively. DD is the initial demand curve. D1 D1 is the new demand curve drawn on the basis of an increase in demand due to the changes in other factors. When demand is D1D1, the quantity demanded increases. On the other hand, demand curve D2D2 shows a decrease in demand due to the changes in the other factors. It may be noted that increase in demand is shown by a new demand curve. Similarly decrease in demand is denoted with the help of a new demand curve drawn to the left side of the initial demand curve.

Related Articles

Back to top button

akun pro kamboja

slot thailand

mahjong ways

sbobet88

slot pulsa

https://bergeijk-centraal.nl/wp-includes/slot-deposit-gopay/

slot mahjong ways

https://tentangkitacokelat.com/wp-includes/slot-deposit-gopay/

slot server thailand

akun pro myanmar

slot garansi kekalahan

slot deposit dana

https://slot-myanmar.deparmotor.com/

https://slotserverluarnegeri.deparmotor.com/

https://slot777.devtmp.focim.edu.mx/

https://bet-200.devtmp.focim.edu.mx/

https://slot-thailand.devtmp.focim.edu.mx/

IDN Poker

Slot Server Thailand

https://buggybrolly.com/wp-includes/idn-poker/

https://www.donchuystacoshoputah.com/

https://orderzenseafoodsushigrill.com/

https://www.saltedsalad.com/

https://tastebakerycafe.com/

https://www.order369ramenpokechinesefood.com/

https://www.smokepitgrill.com/

https://www.ilovesushiindy.com/

https://yakikojapanesegrill.com/

https://www.themixxgrill.com/

https://chilangosbargrill.com/

https://tentangkitacokelat.com/wp-content/slot-pulsa/

https://winkelstueck-reparatur.de/wp-includes/slot-pulsa/

https://slot-pulsa.devtmp.focim.edu.mx/

https://dotnetinstitute.co.in/wp-includes/slot-deposit-gopay/

https://www.yg-moto.com/wp-includes/sbobet/

https://bergeijk-centraal.nl/wp-content/slot777/

https://www.anticaukuleleria.com/slot-myanmar/

https://bergeijk-centraal.nl/wp-includes/slot-bonus-new-member/

https://houseofgabriel.com/wp-includes/slot-bonus/

sbobet

slot777

jurassic kingdom

sbobet

https://houseofgabriel.com/wp-includes/pomo/slot-petir-merah/

https://houseofgabriel.com/wp-includes/pomo/slot-garansi-kekalahan-100/

https://houseofgabriel.com/wp-includes/pomo/slot777/

https://houseofgabriel.com/wp-includes/pomo/mahjong-ways/

https://houseofgabriel.com/wp-includes/pomo/bca-slot/

https://houseofgabriel.com/

rtp slot

slot server thailand

pragmatic play

slot pulsa

slot bonus

slot dana

rtp slot

slot pulsa

https://idn-poker.zapatapremium.com.br/

https://sbobet.albedonekretnine.hr/

https://mahjong-ways.zapatapremium.com.br/

https://slot777.zapatapremium.com.br/

https://baksobakarmantap.com/slot777/

https://www.entrealgodones.es/wp-includes/slot-pulsa/

https://slot88.zapatapremium.com.br/

https://slot-pulsa.zapatapremium.com.br/

https://slot777.jikuangola.org/

https://slot777.nwbc.com.au/

http://wp.aicallcenter.ai/wp-includes/widgets/slot-deposit-pulsa/

https://choviettrantran.com/wp-includes/slot-deposit-pulsa/

https://kreativszepsegszalon.hu/wp-includes/slot-deposit-pulsa/

https://www.muaythaionline.org/wp-includes/slot-deposit-pulsa/

https://pgdownloads.enterprisedb.com/slot-deposit-pulsa/

https://ebook.franchise.7-eleven.com/slot-pulsa/

https://llohan.hollywood.com/slot-pulsa/

https://transition.site5.com/slot-pulsa/

https://fan.iitb.ac.in/slot-pulsa/

Sbobet88

slot server thailand

slot777

slot bonus

slot server myanmar

idn poker

https://podcast.peugeot.fr/slot-pulsa/

https://mahjong-ways.softcia.com.br/

https://le-fief-fleuri.fr/core/wp-includes/sbobet/

https://le-fief-fleuri.fr/core/wp-includes/idn-poker/

slot bonus

idn poker

sbobet88

slot gacor

sbobet88

slot bonus

sbobet88

slot myanmar

slot thailand

slot kamboja

slot bonus new member

sbobet88

bonus new member

slot bonus

https://ratlscontracting.com/wp-includes/sweet-bonanza/

https://quickdaan.com/wp-includes/slot-thailand/

https://summervoyages.com/wp-includes/slot-thailand/

Joker123

sbobet88

https://aws-klinkier.pl/wp-content/idn-poker/

joker123

https://thewolfiscoming.com/wp-includes/slot-bonus/

sbobet88

https://www.handwerksform.de/wp-includes/slot777/

https://www.nikeartfoundation.com/wp-includes/slot-deposit-pulsa/

https://lepremier.miami/wp-content/slot-bonus/

https://www.anticaukuleleria.com/wp-content/cmd368/

https://candyhush.com/wp-content/slot-bonus/

https://showersealed.com.au/wp-content/sabasport/

https://tdapelsin.ru/wp-includes/slot-bonus/

https://kreativszepsegszalon.hu/wp-content/slot-bonus/

sbobet88

https://jakartaaids.org/wp-content/sbobet88/

https://ratlscontracting.com/wp-includes/ubobet/

Adblock Detected

Please consider supporting us by disabling your ad blocker