A Demand Analysis — Economics STD 12 Commerce / Arts — Question

1. Contraction of demand means fall in demand due to a rise in price alone, other factors remaining constant.
2. Contraction of demand is a case of variation of demand.
3. Contraction in demand takes place due to rise in price alone.
4. It is shown by an upward movement along the same demand curve.
   
   

Decrease in Demand

1. Decrease in demand means when less is demanded at the same price or same quantity demanded at a lower price.
2. Decrease in demand is a case of changes in demand.
3. Decrease in demand is due to –
   (a) decrease in income
   (b) decrease in price of substitute
   (c) increase in price of complementary goods
   (d) decrease in population, etc.
4. A decrease in demand is shown by a shift in demand curve to the left of the original demand curve.