Question : Assertion (A)Budget line is also known as the consumption possibility curve. Reason (R): Budget line is a negatively sloped straight line.
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
Option 3: Assertion (A) is true but Reason (R) is False
Option 4: Assertion (A) is False but Reason (R) is True
Correct Answer: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
Solution : The budget line is a graphical representation of every conceivable pairing of two commodities that can be purchased using a particular income and price range, with the condition that the total cost of each pairing equals the consumer's take-home pay. For these reasons, the budget line is also known as the pricing line, price opportunity line, and consumption possibility curve. A consumer must typically give up some units of one product to purchase one more unit of the other, as shown by the slope of the budget line, which also displays the relative prices of the two things they purchase. As a result, it represents the opportunity cost of the product, with the budget line having a negative slope. Hence both are different from each other so option b is correct.
Question : Assertion: Another name for the budget line is the consumption possibility curve. Reason (R): Budget line is negatively sloped.
Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Question : Assertion (A): The price demand curve is negatively sloped. Reason (R): Inverse relationship between price and demand is stated by the law of demand, holding all other parameters constant.
Question : Assertion (A): Demand elasticity is greater than one below the demand curve's midpoint on a straight line with a downward slope. Reason (R): The demand elasticity on a linear demand curve ranges from zero to infinity.
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Question : Assertion (A): Demand elasticity is greater than one below the demand curve's midpoint on a straight line with a downward slope. Reason (R): The elasticity of demand on a linear demand curve ranges from 0 to infinity.
Question : Assertion(A): Demand elasticity is greater than one below the demand curve's midpoint on a straight line with a downward slope.
Reason(R): The range of demand elasticity on a linear demand curve is zero to infinity.
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