Question

2. What is meant by a contraction in demand?

A:reduction in demand due to a rise in the price of the product.

B:A reduction in demand due to a fall in the income of the population.

C:Arise in demand due to a rise in the price of a substitute product.

D:Rise in demand due to a fall in the price of a complement.​

Answer 1

Answer:

B:A reduction in demand due to a fall in the income of the population.

Explanation:

Decrease in demand. Meaning. It refers to a situation where the demand of the commodity decreases due to change in the price of the given commodity other factors remaining constant.