Changes in demand:
Extension and contraction of demand:
The demand curve does not vary its position here. Whenever change in demand for a commodity is totally due to a modification in its price, it is termed as extension or contraction of demand. The extension or contraction in demand is movements on or all along the given demand curve. It is shown in figure below:
Whenever the price of a good is OP, demand is OQ. When the price of good falls to OP2, demand expands to OQ1. Therefore extension in demand is QQ1. On other hand, if the price of good rises to OP1 demand bonds to OQ2. Therefore contraction in demand is QQ2.
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