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Question
Identify the following as expansion, contraction, decrease or increase in demand.
| Price (₹) | Demand (units) |
| 10 | 100 |
| 12 | 60 |
Classify
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Solution
Contraction in Demand.
Explanation:
When the price rises from ₹ 10 to ₹ 12, the quantity demanded decreases from 100 units to 60 units. This is known as contraction in demand, as it occurs due to a rise in the commodity's own price.
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