Q56
Contraction of demand is the result of
A.
Decrease in the number of consumers
B.
Increase in the price of the commodity concerned
AnswerC.
Increase in the prices of other goods
D.
Decrease in the income of purchasers
Answer: Option B
Solution
Answer: Option B
Solution:
Contraction of demand is the result of Increase in the price of the commodity concerned. The demand for a commodity changes due to a change in price. It is called extension and contraction of demand. When there is decrease in price of commodity there is in increase in demand of that commodity.