A rise in the quantity demanded caused by a fall in the price of the product is called?

A rise in the quantity demanded caused by a fall in the price of the product is called?

• A. Extension in Demand
• B. Contraction in Demand
• C. Aggregation
• D. Market Demand

Answer: (A)

The key idea is the law of demand: when the price of a product falls, people buy more of it. This rise in the quantity demanded as a result of the price drop is called an extension (or expansion) in demand. It describes a movement along the same demand curve, not a shift of the curve itself, because only the price has changed. The other terms don’t fit this situation. A contraction in demand would be a fall in quantity demanded when price rises. Aggregation means adding together data from different sources or goods, which isn’t about how quantity responds to price. Market demand refers to the total demand for a good across all buyers in the market, not the response of quantity demanded to a price change for a single product.

The key idea is the law of demand: when the price of a product falls, people buy more of it. This rise in the quantity demanded as a result of the price drop is called an extension (or expansion) in demand. It describes a movement along the same demand curve, not a shift of the curve itself, because only the price has changed.

The other terms don’t fit this situation. A contraction in demand would be a fall in quantity demanded when price rises. Aggregation means adding together data from different sources or goods, which isn’t about how quantity responds to price. Market demand refers to the total demand for a good across all buyers in the market, not the response of quantity demanded to a price change for a single product.