Define the following terms : (i) Increase in demand , (ii) Decrease in demand , (iii) Contraction in demand.

Define the following terms : (i) Increase in demand , (ii) Decrease in

1.	Define the following terms : (i) Increase in demand , (ii) Decrease in demand , (iii) Contraction in demand.
Answer» Solution :INCREASE in Demand is defined as a RISE in the demand of a commodity due to a change in any other factor of the commodity other than the own price of the commodity. Decrease in Demand is defined as a fall in demand of the commodity due to a change in any other factor of the commodity other than the own price of the commodity. Contraction in Demand is definded as a fall in the qunatity DEMANDED of a commodity caused by an increase in own price of the commodity, other factors remain CONSTANT.