Difference between Expansion in Demand and Increase in Demand

Expansion in Demand and Increase in Demand are cases of Movement along the same Demand Curve and Shift in Demand Curve respectively.

What is Expansion in Demand?

When there is an increase in the quantity demanded of a commodity because of a fall in its price by keeping other factors constant, it is known as an Expansion in Demand. In simple terms, the demand for a commodity rise because of a fall in its price. Expansion in demand results in a downward movement along the same demand curve.

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What is Increase in Demand?

When there is an increase in the quantity demanded of a commodity because of any factor other than the price of the commodity, it is known as an Increase in Demand. In simple terms, the demand for a commodity increases at the same price, because of changes in other factors. Increase in demand results in a rightward shift in the demand curve.

Example:

Difference between Expansion in Demand and Increase in Demand

Basis	Expansion in Demand	Increase in Demand
Meaning	An increase in the quantity demanded of a commodity because of a fall in its price, keeping other factors constant is known as Expansion in Demand.	An increase in the quantity demanded of a commodity because of any factor other than the price of the commodity is known as Increase in Demand.
Effect on Demand Curve	The effect of expansion in demand is a downward movement along the same demand curve.	The effect of increase in demand is a rightward shift in the demand curve.
Price Effect	There is negative price effect; i.e., the demand for a commodity increases when its price falls.	There is no price effect; i.e., the demand for a commodity increases at the same price.
Reason	The demand for a commodity expands because of a reduction in its price.	The demand for a commodity increases because of a favourable change in other factors such as decrease in the price of complementary goods, increase in the price of substitutes, etc.
Example	If the  demand for a commodity X rises from 200 units to 270 units because of a fall in its price from ₹15 to ₹10, then it is a case of Expansion in Demand.	If the demand for a commodity X rises from 200 units to 270 units with constant price of ₹15 because of changes in other factors like increase in the price of the substitute good, then it is a case of Increase in Demand.