The phrase 'A rise in the quantity demanded caused by a fall in price' matches which term from the list?

The phrase 'A rise in the quantity demanded caused by a fall in price' matches which term from the list?

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

Answer: (A)

The phrase describes movement along the demand curve: when price falls, people buy more, so quantity demanded rises. This specific movement is called extension in demand. It reflects the law of demand, with a negative price–quantity relationship, assuming other factors stay the same. It’s not a shift of the entire demand curve (which would be a change in demand due to non-price factors). Contraction in demand would be the opposite movement (price rises, quantity demanded falls). Elasticity, meanwhile, measures how big the quantity change is relative to the price change, not the direction of the change itself. Market demand refers to the total demand of all buyers at each price, not the response of quantity in a single market.

The phrase describes movement along the demand curve: when price falls, people buy more, so quantity demanded rises. This specific movement is called extension in demand. It reflects the law of demand, with a negative price–quantity relationship, assuming other factors stay the same. It’s not a shift of the entire demand curve (which would be a change in demand due to non-price factors). Contraction in demand would be the opposite movement (price rises, quantity demanded falls). Elasticity, meanwhile, measures how big the quantity change is relative to the price change, not the direction of the change itself. Market demand refers to the total demand of all buyers at each price, not the response of quantity in a single market.