A contraction of demand is associated with:
A) An increase in the quantity demanded
B) A fall in the quantity demanded
C) An inward shift of the demand curve
D) An outward shift of the demand curve

Question

Quizplus · Accepted Answer

A contraction of demand refers to a situation where there is a decrease or fall in the quantity demanded due to an increase in the price of the good, assuming other factors remain constant. This is represented by a movement up along the demand curve, not a shift of the demand curve itself.

A Contraction of Demand Is Associated With