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Question
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.
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Solution
It is a situation of decrease in demand in both cases.
Reason: The consumer buys a smaller quantity at the same price (Case I) or buys the same quantity at a lower price (Case II).
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