Question

Expansion and contraction in demand are caused by ______.

Options

• Change in price of the given good

• Change in income

• Change in prices of related goods

• Change in population

Answer 1

Expansion and contraction in demand are caused by change in price of the given good.

Explanation:

Expansion and contraction are movements along the same demand curve caused by a change in the good’s own price. The other factors cause shifts in the demand curve.