Contraction in demand and decrease in demand: Both reflect fall in quantity demanded but causes are different:
1. Contraction of demand is the result of change (rise) in price alone whereas decrease in demand is at the same price due to change in factors other than the price of the commodity.
2. In the case of contraction of demand, we move up the demand curve from A to B as shown below but in the case of decrease in demand the demand curve shifts leftward.
