Effect of Change in Price on demand
Effect of Change in Price on demand
A change in a price of a product will lead to either an extension or contraction in demand. Remember that the change in the price of a product will never lead to a shift in the demand curve.
When the price of a product deceases and people demand more of that product it is considered to be an extension in demand
When the price of a product increases and people demand less of the that product it is considered to be a contraction in demand
