Question
Differentiate between increase in demand and expansion in demand (increase in quantity demanded).
✓
Answer
| S. No. | Basis | Increase in Demand | Expansion in Demand | ||||||||||||
| 1. | Meaning | An increase in demand means that consumers now demand more at a given price level. | It states that rise in quantity demanded due to fall in price of the commodity. | ||||||||||||
| 2. | Cause |
|
| ||||||||||||
| 3. | Basis should be Schedule and Price (*) demand (Units) |
|
| ||||||||||||
| 4. | Diagram |  |  |
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
Explore more
Similar questions
Explain the 'free entry and exit of firms' feature of monopolistic competition.
Discuss the working of the adjustment mechanism in the following situations:
- Aggregate demand is greater than Aggregate supply.
- Ex-ante Investments are lesser than Ex-ante Savings.
The demand for a good rises by 20 per cent as a result of fall in its price. Its price elasticity of demand is (-)0.8. Calculate the percentage fall in price.
Explain why the tax multiplier is smaller in absolute value than the government expenditure multiplier.
Production function.
The quantity demanded of a commodity at a price of ₹ 8 per unit is 600 units. Its price falls by 25 percent and the quantity demanded rises by 120 units. Calculate the price elasticity of demand. Is its demand elastic? Give reason for your answer.
Calculate Gross National Product at Market Price and Net National Disposable Income from the following data:
| (Rs. crores) | ||
| 1 | Current transfers from government. | 25 |
| 2 | Compensation of employees. | 600 |
| 3 | Net current transfers from the rest of the world. | 20 |
| 4 | Rent. | 100 |
| 5 | Consumption of fixed capital. | 50 |
| 6 | Interest. | 120 |
| 7 | Net indirect tax. | 110 |
| 8 | Profit. | 80 |
| 9 | Mixed income of the self-employed. | 200 |
| 10 | Net factor income from abroad. | (-)10 |
Differentiate between Short Period and Long Period.
Complete the following table:
| Output (Q) (units) | Price (₹) | Marginal Revenue (₹) | Total Revenue (₹) |
| 1 | - | 10 | 10 |
| 2 | - | 4 | - |
| 3 | - | - | 15 |
| 4 | - | -3 | - |
Calculate Average Revenue (AR) and Marginal Revenue (MR):
| Units Sold | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| TR (₹) | 20 | 36 | 48 | 56 | 60 | 60 | 56 |