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Questions
What is contraction in demand?
Define contraction of demand (or decrease in quantity demanded).
Solution
When quantity demanded of a commodity falls due to rise in own price of the commodity, other factors remaining constant, it is called contraction of demand or decrease in quantity demanded.
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State with reason whether you agree or disagree with the following statement:
When price of Giffen goods fall, the demand for it increases.
State with reason whether you agree or disagree with the following statement:
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State with reasons whether you agree or disagree with the following statement:
When price of Giffen goods fall, the demand for it increases.
State two circumstances under which the demand curve slopes upwards to the right.
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