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प्रश्न
State whether the following statement is true or false. Give reasons.
Contraction of demand is the result of a decrease in the number of consumers.
पर्याय
True
False
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उत्तर
This statement is false.
Explanation:
No, a decrease in the number of consumers does not cause demand to contract. Thus, contraction of demand refers to when demand for a commodity falls as the price of the commodity rises.
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संबंधित प्रश्न
What is meant by the contraction in demand?
What is meant by an increase in demand?
As a result of rise in consumer's income, the demand curve for coarse-grain (inferior good) will:
When the demand curve of a product shifts to the right, it represents a situation of ______.
Define decrease in demand.
Explain the following diagram:
What causes an upward movement along a demand curve?
What causes a downward movement along a demand curve?
The following table shows a change in the demand. Read the table carefully and answer the question that follows:
| Case I | Case II | ||
| Price (₹) | Quantity | Price (₹) | Quantity |
| 10 | 20 | 10 | 20 |
| 10 | 10 | 5 | 20 |
What type of change is it, decrease in demand or contraction in demand? Give a reason.
State whether the following statement is true or false. Give reasons.
A change in quantity demanded as a result of price change will imply a shift of the demand curve to the right.
