Question
Differentiate between increase in demand and expansion in demand (increase in quantity demanded).
✓
Answer
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S. No.
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Basis
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Increase in Demand
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Expansion in Demand
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1.
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Meaning
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An increase in demand means that consumers now demand more at a given price level.
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It states that rise in quantity demanded due to fall in price of the commodity.
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2.
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Cause
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3.
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Basis should be Schedule and Price (*) demand (Units)
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4.
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Diagram
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Output (Units)
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1
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2
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3
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Average Variable Cost(₹)
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20
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25
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24
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Find out average variable cost in:
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Total Output
(Units)
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Total Cost (Rs)
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0
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120
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1
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180
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2
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200
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3
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210
|
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4
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230
|
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5
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270
|
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6
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360
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