Change in the demand of butter due to increase in its price is called ________.

increase of demand

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decrease of demand

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contraction of demand

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extension of demand

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Solution

The correct option is A contraction of demand
Change in the demand of butter due to increase in its price is called contraction of demand. Contraction of demand refers to decrease in quantity demanded of a commodity due to rise in the own price.

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Similar questions

Increase in quantity demanded of a commodity due to a fall in its price is called

List-I	List-II
(a) Contraction of Demand	(i) Non-Price change effect
(b) Decrease in Demand	(ii) Demand curve remains the same
(c) Increase in Demand	(iii) Price change effect
(d) Expansion of Demand	(iv) Shifts the Demand curve

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