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Question
When less units are demanded at high price it shows ______.
Options
increase in demand
expansion of demand
decrease in demand
contraction in demand
MCQ
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Solution
When less units are demanded at high price it shows contraction in demand.
Explanation:
When the price of a commodity increases and consumers buy fewer units of it, the quantity demanded decreases. This fall in demand due to a rise in price is called contraction in demand.
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