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.
As a result of rise in consumer's income, the demand curve for coarse-grain (inferior good) will:
Differentiate between extension and contraction of demand.
What is an expansion of demand?
Explain the following diagram:
Give two reasons for the shift of the demand curve towards the left.
What is meant by an increase in demand?
What does a rightward shift of demand curve indicate?
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.
