Which of the following situations represents a contraction in demand and not a decrease in demand?
Show Hint
- Income of consumers decreases and demand falls
- Price of the commodity rises and quantity demanded falls
- Price of substitute commodity falls
- Consumer preference shifts away from the commodity
The Correct Option is B
Solution and Explanation
• Contraction in demand occurs due to a rise in the commodity's own price.
• Decrease in demand occurs due to changes in factors other than price.
Step 1: Analyze Option (A). Income falls. Demand curve shifts left. This is decrease in demand.
Step 2: Analyze Option (B). Price rises. Movement occurs upward along the same demand curve. This is contraction in demand.
Step 3: Analyze Option (C). Price of substitute falls. Consumers switch products. Demand decreases.
Step 4: Analyze Option (D). Preference changes negatively. Demand decreases. Thus only Option (B) represents contraction in demand. Hence Option (B) is correct.
Top CUET Economics Questions
- How can morbidity be prevented?
A. Ensuring safe drinking water
B. Taking good education
C. Healthy and nutrative food
D. By employment generation
E. Sanitation
Choose the correct answer from the options given below: - Arrange the following of elasticities of demand in increasing order as per geometric method.
A. Mid-Point of the demand curve
B. Intercept on Y-axis
C. Between Mid-Point and intercept on X-axis
D. Between Mid-Point and intercept on Y-axis
E. Intercept on X-axis
Choose the correct answer from the options given below: - Match List I with List II
LIST I
LIST II
A Revenue Receipt I Increase in Liability B Capital Receipt II Do not increase in Asset C Revenue Expenditure III Increase in Asset D Capital Expenditure IV Do not increase Liability
Choose the correct answer from the options given below: - Match List I with List II
LIST I
LIST II
A Accommodating items I International purchases B Capital Account II Central Bank C Balance of trade III Above the line items D Dirty Floating IV Visible items
Choose the correct answer from the options given below: - Choose the correct example of Revenue Expenditure.
Top CUET Demand and Supply Questions
- Which of the following is NOT a component of aggregate demand?
- Aggregate demand for final goods consists of:
Match the following:
\[ \begin{array}{ll} \textbf{List-I} & \textbf{List-II} \\[8pt] (A)\ \text{Leftward shift in both demand and supply curves} & (I)\ \text{Equilibrium price remains unchanged} \\[6pt] (B)\ \text{Rightward shift in both demand and supply curves} & (II)\ \text{Equilibrium quantity increases} \\[6pt] (C)\ \text{Equal percentage increase in both demand and supply curves} & (III)\ \text{Equilibrium quantity decreases} \\[6pt] (D)\ \text{Supply curve shifts right and demand curve shifts left} & (IV)\ \text{Equilibrium quantity remains unchanged} \end{array} \]Match the following:
\[ \begin{array}{ll} \textbf{List-I} & \textbf{List-II} \\[8pt] (A)\ \text{Leftward shift in both demand and supply curves} & (I)\ \text{Equilibrium price remains unchanged} \\[6pt] (B)\ \text{Rightward shift in both demand and supply curves} & (II)\ \text{Equilibrium quantity increases} \\[6pt] (C)\ \text{Equal percentage increase in both demand and supply curves} & (III)\ \text{Equilibrium quantity decreases} \\[6pt] (D)\ \text{Supply curve shifts right and demand curve shifts left} & (IV)\ \text{Equilibrium quantity remains unchanged} \end{array} \]Match the following:
\[ \begin{array}{ll} \textbf{List-I} & \textbf{List-II} \\[8pt] (A)\ \text{Leftward shift in both demand and supply curves} & (I)\ \text{Equilibrium price remains unchanged} \\[6pt] (B)\ \text{Rightward shift in both demand and supply curves} & (II)\ \text{Equilibrium quantity increases} \\[6pt] (C)\ \text{Equal percentage increase in both demand and supply curves} & (III)\ \text{Equilibrium quantity decreases} \\[6pt] (D)\ \text{Supply curve shifts right and demand curve shifts left} & (IV)\ \text{Equilibrium quantity remains unchanged} \end{array} \]
Top CUET Questions
Select the statements that are CORRECT regarding patterns of biodiversity.
(A) Species diversity increases as we move away from the equator towards the poles(B) The tropical Amazon rain forest in South America has the greatest biodiversity on earth.(C) There is more solar energy available in the temperate region than tropics.(D) Tropical environments are less seasonal relatively more constant and predictableWhich of the following hormone is not produced by placenta ?
- Individuals with karyotype of 44+XXY having overall masculine development with few feminine development like Gynaecomastia has _______ chromosomal disorder.
- Match List - I with List - II.Choose the correct answer from the options given below :
List - I
List - II
A Streptokinase I Blood-Cholestrol lowering agents B Cyclosporin II Clot Buster C Statins III Propionibacterium sharmanii D Swiss Cheese IV Immuno suppressive agent Which of the following option determines percolation and water holding capacity of soils ?