Question : Assertion: Another name for the budget line is the consumption possibility curve. Reason (R): Budget line is negatively sloped.
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 the correct explanation of Assertion (A).
Solution : The budget line is also known as the pricing line, price opportunity line, and consumption possibility curve. The price ratio between good 1 and excellent 2 determines the budget line's slope. This would be the x-axis price of the good divided by the y-axis price of the good. A budget line's slope is always negative because it slopes downward. Hence option a is the correct answer.
Question : Assertion (A)Budget line is also known as the consumption possibility curve. Reason (R): Budget line is a negatively sloped straight line.
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): The demand curve for the market is flatter than the demand curve for an individual.
Reason (R): By horizontally summing individual demand, the market demand curve is created.
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.
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.
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