Difference between Contraction in Demand and Decrease in Demand

Basis	Contraction in Demand	Decrease in Demand
Meaning	A fall in the quantity demanded of a commodity because of an increase in its price by keeping other factors constant is known as Contraction in Demand.	A fall in the quantity demanded of a commodity because of any factor other than the price of the commodity is known as Decrease in Demand.
Effect on Demand Curve	The effect of contraction in demand is an upward movement along the same demand curve.	The effect of decrease in demand is a leftward shift in the demand curve.
Price Effect	There is a negative price effect; i.e., the demand for a commodity decreases when its price rises.	There is no price effect; i.e., the demand for a commodity decreases at the same price.
Reason	The demand for a commodity contracts because of an increase in its price.	The demand for a commodity decreases because of an unfavourable change in other factors such as increase in the price of complementary goods, decrease in the price of substitutes, etc.
Example	If the demand for a commodity X falls from 200 units to 140 units because of an increase in its price from ₹15 to ₹20, then it is a case of Contraction in Demand.	If the demand for a commodity X falls from 200 units to 140 units with constant price of ₹15 because of changes in other factors like decrease in the price of the substitute good, then it is a case of Decrease in Demand.

Accounting Equation|Decrease in Capital and Increase in the Liability, Decrease in Liability and Increase in the Capital and Increase and Decrease in Assets

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Difference between Contraction of Supply and Decrease in Supply

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Accounting Equation | Decrease in Assets and Capital both and Decrease in Asset and Liability both

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Difference between Individual Demand and Market Demand

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Difference between Expansion in Demand and Increase in Demand

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What is Demand Function and Demand Schedule?

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