The fall in the quantity demanded due to a rise in price is called?

The fall in the quantity demanded due to a rise in price is called?

• A. Contraction in Demand
• B. Extension in Demand
• C. Aggregation
• D. Demand

Answer: (A)

When price rises, people buy less, so the quantity demanded falls. This specific change happens along the same demand curve and is called a contraction in demand. The term extension in demand describes the opposite movement—an increase in quantity demanded when price falls. Aggregation isn’t about a single good’s price-quantity change, it’s about summing across markets. Demand refers to the overall relationship, not the short-run change in quantity due to a price change. So the fall in quantity demanded caused by a rise in price is contraction in demand.

When price rises, people buy less, so the quantity demanded falls. This specific change happens along the same demand curve and is called a contraction in demand. The term extension in demand describes the opposite movement—an increase in quantity demanded when price falls. Aggregation isn’t about a single good’s price-quantity change, it’s about summing across markets. Demand refers to the overall relationship, not the short-run change in quantity due to a price change. So the fall in quantity demanded caused by a rise in price is contraction in demand.