PRC-3 · Chapter 10 · Question 22 of 70
If the market price of laptops drops from Rs. 80,000 to Rs. 60,000 during a massive sale, consumers will naturally buy more. What economic terminology describes this specific reaction?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) An extension in quantity demanded (movement)
Explanation
A change in the quantity demanded caused solely by a change in the product's own price is called an extension (or contraction) and is represented by a movement along the curve.
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