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When less units are demanded at high price it shows ______. - Economics

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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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Chapter 3.1: Demand Analysis - Exercise [Page 25]

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Balbharati Economics [English] Standard 12 Maharashtra State Board
Chapter 3.1 Demand Analysis
Exercise | Q 1. (4) | Page 25
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