Question:
Contraction of demand takes place when:
Options:
Contraction of demand takes place when:
Options:
Options:
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Contraction of demand occurs when the price of the good rises, leading to a decrease in quantity demanded.
Updated On: Nov 5, 2025
- Income of consumers decreases
- Price of goods concerned increases
- Number of consumers decreases
- Price of other related goods increases
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The Correct Option is B
Solution and Explanation
Contraction of demand refers to a decrease in quantity demanded due to a price increase, as per the law of demand.
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