Contraction and expansion in demand class 11 Economics

Demand

1. Revision

2. MIND MAP OF MOVEMENT IN
DEMAND CURVE.
MOVEMENT ALONG DEMAND CURVE
CHANGE IN QUANTITY DEMANDED
Extension in demand Contraction in demand
Caused by decrease in
own price of the
commodity
Caused by increase
in own price of the
commodity

3. Mind map Shift in demand curve
SHIFT IN DEMAND CURVE
CHANGE IN DEMAND
Decrease in demand or
Backward shift in demand curve
( Demand Curve shift to left )
Increase in demand or Forward
shift in demand curve
( Demand Curve shift to Right)
Caused by change in factors other than own price of the
commodity.

4. Extension and contraction
(Downward and upward movement along the
demand curve)
•Extension of demand also called expansion in
demand. Movement along the demand curve
refers to extension and contraction in
demand. Both are caused by change in own
price of the commodity.

5. Contraction in Demand Curve.
•Contraction in demand refers to decrease
in quantity demanded due to rise in own
price of the commodity.

6. Change in Demand
It is also called shift in demand curve. When
quantity of commodity changes due to
change in factors other than price. It has two
types: -
1.Rightward shift in demand.
2.Leftward shift in demand.

8. Rightward shift in demand. – or
Increase in demand.
•It means that quantity demanded of a
commodity increases even than price of the
commodity remains constant.
OR
When quantity of a commodity increases due to
other factors and price of the commodity
remains constant.

9. Right ward shift in demand
PRICE DEMAND
20
20
100
150

10. FACTORS SHITING DEMAND
RIGHTWARD.
•1. When income of the consumer increases.
•2. When price of substitute good increase.
•3. When price of complementary good falls.
•4. When taste of the consumers shifts in
favour of the commodity due to change in
fashion and climate.

11. LEFTWARD SHIFT IN DEMAND
PRICE DEMAND
20
20
100
70

12. FACTORS SHIFTING DEMAND CURVE
LEFTWARD.
•1. When income of the consumer’s falls.
•2. When price of the substitute goods
decrease.
•3. When price of the complementary goods
increases.
•4. When taste of the consumer shifts against
the commodity due to change in fashion or
climate