DIFFERENCE IN EXTENSION OF DEMAND AND INCREASE IN DEMAND

• DIFFERENCE IN EXTENSION OF DEMAND AND INCREASE IN DEMAND
  MICRO ECONOMICS
• SHASHI AGGARWAL ECONOMICS AND LAW CLASSES
• MEANING

1. EXTENSION OF DEMAND MEANS RISE IN DEMAND IN RESPONSE TO FALL IN PRICE OTHER THING BEING EQUAL.
2. EXPRESSED BY THE MOVEMENT FROM HIGHEST POINT TO LOWER POINT ALONG THE SAME DEMAND CURVE

• INCREASE IN DEMAND REFERS TO RISE IN DEMAND IN RESPONSE TO CHANGES IN THE DETERMINATION OF DEMAND OTHER THAN PRICE
• UPWARD SHIFT OF THE ENTIRE DEMAND CURVE
• REASON OF INCREASE IN DEMAND:-

1. INCREASE IN INCOME
2. RISE IN PRICE OF SUBSTITUTE GOODS
3. FALL IN THE PRICE OF  COMPLEMENTARY GOODS
4. FAVORABLE CHANGES IN TASTE AN PREFERENCE
5. EXPECTATION OF RISE IN PRICES
6. INCREASE IN POPULATION

• DIFFERENCE