Question : Assertion (A)Price elastic refers to a good that has multiple uses.
Reason (R): As prices decline, there are more buyers on the market.
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: Assertion (A) is False but Reason (R) is True
Solution :
Demand grows when prices drop because more people are willing to purchase the product at a cheaper price.
Elastic demand refers to the demand for a good or service that has many uses because this type of demand will be more impacted by price fluctuations than other types of demand.
Hence option d is the correct answer.