What is the different between an increase in demand and an extension in demand?

First of all this is something that people very frequently struggle with and it can be difficult to get your head around at first. But if we were to look at the demand curve it is easier to visualise the difference. An extension of demand can be seen as a movement along the demand curve. This movement would be caused by a change in the price of the product in question.
An increase in demand can be seen as a rightward shift of the demand curve. This shift can be caused by a number of factors. For example a shift in demand for a product because of a change in the price of a substitute good. This could be when the price of Chicken increases, we will see a rightward shift, increase in the demand for turkey.

Answered by Adam M. Economics tutor

24861 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

How do interest rate changes affect economic growth?


What are the Four factors of production?


Explain why a firm in Perfect Competition earns supernormal profits in the short-run


Explain why income tax in the UK is an example of progressive taxation?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2024

Terms & Conditions|Privacy Policy
Cookie Preferences