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Chapter 1 Unit II questions

For Chapter 1 Unit II questions Click Nature & Scope of Business Economics
QUESTION
Q2) Contraction of demand is the result of :

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Correct

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Solution:
Contraction of demand refers to a fall in demand due to rise in price alone. Other factors like tastes, income of the consumer, size of population etc. remain unchanged. Therefore, option (b) is correct.
Correct option is (b)