Difference between Contraction of Demand and Decrease in Demand are :
| Point of differences | Contraction of Demand | Decrease in Demand |
| Meaning | When the quantity demanded falls due to an increase in price, other factors remaining constant, it is known as contraction in demand. | Decrease in demand refers to a fall in the demand of a commodity caused due to any factor other than own price of the commodity. |
| Effect on demand curve | There is an upward movement along the same demand curve. | There is a leftward shift in the demand curve |
| Diagram | | |
