Changes in DemandBy Muahammad Faheem Abbas

Kinds of changes in demand

There are two kinds of changes in demand:Extension & Contraction of demandRise & Fall of demand

Extension & Contraction

Extension and Contraction of demand because of influence of change in price.

It is also called movement along demand

curve

Definitions Extension of demand

Other things remains the same, when price of commodity decreases its quantity demand increases is called extension of

demand.

Definitions Contraction of demand

Other things remains the same, when price of commodity increases its quantity demand decreases is called contraction of demand.

Rise and Fall Rise and Fall of demand because of influence

of change in other factors. It is also called shift of demand curve

Definitions Rise of demand.

When price of commodity remains constant, but quantity demand of commodity increases due to change in other factors is called rise of demand.

Definitions Fall of demand.

When price of commodity remains constant, but quantity demand of commodity

decreases due to change in other factors is called rise of demand.

Shifting factors of demand

Change in fashion Change in weather Change in consumer`s income Change in trade circumstances

Changes in SupplyKinds of changes in supply

There are two kinds of changes in supply:Extension & Contraction of supplyRise & Fall of supply

Extension & Contraction Extension and Contraction of supply because

of influence of change in price. It is also called movement along supply

curve

Definitions Extension of supply

Other things remains the same, when price of commodity increases its quantity supply also increases is called extension

of supply.

Definitions Contraction of supply

Other things remains the same, when price of commodity decreases its quantity supply also decreases is called contraction

of supply.

Rise and Fall Rise and Fall of supply because of influence

of change in other factors. It is also called shift of supply curve

Definitions Rise of supply.

When price of commodity remains constant, but quantity supply of commodity increases due to change in other factors is called rise of supply.

Definitions Fall of supply.

When price of commodity remains constant, but quantity supply of commodity decreases due to change in other factors is called rise of supply.

Shifting factors of supplyChanges in technologies or techniques of

productionGovernment policies weather conditionsPolitical conditionsChanges in prices of other goods

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