In expansion and contraction of demand______
  • a)
    Demand curve remains unchanged
  • b)
    Demand curve changes
  • c)
    Slope of the demand curve changes
  • d)
    Both  (a) & (b) above
Correct answer is option 'D'. Can you explain this answer?

CA Foundation Question

5 Answers
Suraksha Pahwa answered Jun 15, 2018
When as a result of decrease in price quantity demanded increases, it is expansion of demand and when as a result of increase in price, quantity demanded decreases, it is contraction of demand. it renders the demand curve unchanged but the slope of demand curve changes.

Dashvanth Kumar answered Dec 12, 2018
Expansion or contraction of demand takes place due to the changes occurred in price only which is generally known as change in quantity demanded in such cases there will be a movement along the same demand curve and the demand curve will not change so option A is the correct answer and not option D

Shriyanshu Keshari answered Aug 13, 2018
Yes when changes take place it goes right side or left side

This discussion on In expansion and contraction of demand______a)Demand curve remains unchangedb)Demand curve changesc)Slope of the demand curve changesd)Both (a) & (b) aboveCorrect answer is option 'D'. Can you explain this answer? is done on EduRev Study Group by CA Foundation Students. The Questions and Answers of In expansion and contraction of demand______a)Demand curve remains unchangedb)Demand curve changesc)Slope of the demand curve changesd)Both (a) & (b) aboveCorrect answer is option 'D'. Can you explain this answer? are solved by group of students and teacher of CA Foundation, which is also the largest student community of CA Foundation. If the answer is not available please wait for a while and a community member will probably answer this soon. You can study other questions, MCQs, videos and tests for CA Foundation on EduRev and even discuss your questions like In expansion and contraction of demand______a)Demand curve remains unchangedb)Demand curve changesc)Slope of the demand curve changesd)Both (a) & (b) aboveCorrect answer is option 'D'. Can you explain this answer? over here on EduRev! Apart from being the largest CA Foundation community, EduRev has the largest solved Question bank for CA Foundation.
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