Contraction of demand is the result of:

CA Foundation · Business Economics · MTP · September 2025
Contraction of demand is the result of:
(A) A. Decrease in the number of consumers
(B) B. Increase in the price of the good concerned
(C) C. Price of related products
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Increase in the price of the good concerned

Topics: Theory of Demand and Supply

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