Which term is used to describe factors that lead to a decrease in demand?

The term used to describe factors that lead to a decrease in demand is "contraction of demand." This concept refers to a situation where the quantity demanded of a good or service decreases due to a rise in its price, assuming other factors remain constant. In this context, when the price of a product increases, consumers may purchase less of it, resulting in a contraction of demand.

Understanding contraction of demand is crucial in economics as it illustrates the negative relationship between price and quantity demanded, foundational to the law of demand. It highlights how consumer behavior shifts in response to changes in price, impacting overall market dynamics.

The other options represent different concepts in economics. Substitutes are alternative goods that can replace each other, while complements are products that are consumed together, affecting demand in a different way. Elasticity pertains to the responsiveness of quantity demanded to changes in price or income, but it does not specifically denote a decrease in demand itself.