Advertisements
Advertisements
Question
Define contraction of demand (or decrease in quantity demanded).
Advertisements
Solution
When the quantity demanded of a commodity falls due to a rise in its own price of the commodity, other factors remaining constant, it is called a contraction of demand or a decrease in the quantity demanded.
RELATED QUESTIONS
If Coke and Fanta are close substitutes to each other, a rise in price of Coke will lead to ______ for Fanta.
What does an upward movement along the same demand curve indicate?
When the demand curve of a product shifts to the right, it represents a situation of ______.
With the help of a suitable diagram, distinguish between a change in quantity demanded and a change in demand.
Distinguish between “movement along the demand curve” and shift of a demand curve.
What is meant by an increase in demand?
What causes a downward movement along a demand curve?
Explain the following diagram.
Give two factors responsible for the shift of the demand curve to the right.
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.
