Answer: D: ContractionExplanation:When lesser quantity is demanded with a rise in price, it is called contraction of demand. This concept is based on the law of demand, which states that the quantity demanded of a good or service is inversely related to its price.Key points to understand the contraction of demand:- Price increase: When the price of a good or service increases.- Lesser quantity demanded: The quantity demanded by consumers decreases due to the higher price.- Contraction: This decrease in quantity demanded is referred to as a contraction of demand.- Law of Demand: The contraction of demand is in line with the law of demand, which establishes a negative relationship between price and quantity demanded.

Answer:

The concept described in the question is known as the "contraction of demand." It refers to a situation where there is a decrease in the quantity demanded of a good or service as the price of that good or service increases.

Explanation:

1. Law of Demand:
Before discussing the contraction of demand, it is important to understand the basic law of demand. According to the law of demand, there is an inverse relationship between the price of a good or service and the quantity demanded. In other words, as the price of a good increases, the quantity demanded decreases, and vice versa, assuming all other factors remain constant.

2. Definition of Contraction of Demand:
The contraction of demand occurs when there is a decrease in the quantity demanded of a good or service as the price of that good or service increases. In this situation, consumers are less willing or able to purchase the good or service at higher prices.

3. Factors Affecting Contraction of Demand:
There are several factors that can contribute to the contraction of demand, including:

- Income: If consumers' income decreases, they may be less willing or able to purchase a good or service at higher prices, leading to a contraction of demand.
- Substitutes: If there are readily available substitutes for a good or service, consumers may switch to these substitutes when the price of the original good or service increases, leading to a contraction of demand.
- Tastes and Preferences: If consumers' tastes and preferences change and they no longer desire a particular good or service, they may be less willing to purchase it at higher prices, resulting in a contraction of demand.

4. Graphical Representation:
In graphical terms, the contraction of demand is represented by a leftward shift of the demand curve. The original demand curve shows the relationship between price and quantity demanded, while the new demand curve after the contraction shows a decrease in quantity demanded at each price level.

Conclusion:
In conclusion, the contraction of demand refers to a situation where there is a decrease in the quantity demanded of a good or service as the price of that good or service increases. This concept is an important aspect of understanding consumer behavior and the relationship between price and quantity demanded.

It;s given in module.