Question : Assertion: When the price of a product increases by 10%, and the quantity demanded decreases by 20%, the price elasticity of demand is 0.5.

Reason: Price elasticity of demand measures the percentage change in quantity demanded divided by the percentage change in price.

Option 1: Both the assertion and reason are correct and related.

Option 2: Both the assertion and reason are correct but not related.

Option 3: The assertion is correct, but the reason is incorrect.

Option 4: The assertion is incorrect, but the reason is correct.

Question : Assertion: When the price of a product increases by 10% and its quantity demanded decreases by 10%, the price elasticity of demand is -1.

Reason: Price elasticity of demand measures the percentage change in quantity demanded divided by the percentage change in price.

Option 1: Both the assertion and reason are correct and related.

Option 2: Both the assertion and reason are correct but not related.

Option 3: The assertion is correct, but the reason is incorrect.

Option 4: The assertion is incorrect, but the reason is correct.

Question : Assertion: Price elasticity of demand measures the percentage change in quantity demanded given a one percent change in price.

Reason: Price elasticity of demand is calculated by dividing the percentage change in quantity demanded by the percentage change in price.

Option 1: Both the assertion and reason are correct and related.

Option 2: Both the assertion and reason are correct but not related.

Option 3: The assertion is correct, but the reason is incorrect.

Option 4: The assertion is incorrect, but the reason is correct.

Question : Assertion: Cross elasticity of demand measures the responsiveness of quantity demanded of one good to changes in the price of another good.

Reason: Cross elasticity of demand is calculated as the percentage change in quantity demanded of one good divided by the percentage change in the price of another good.

Option 1: Both the assertion and reason are correct and related.

Option 2: Both the assertion and reason are correct but not related.

Option 3: The assertion is correct, but the reason is incorrect.

Option 4: The assertion is incorrect, but the reason is correct.

Question : Assertion: The concept of elasticity of demand is only applicable to individual consumers.

Reason: Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Option 1: Both the assertion and reason are correct and related.

Option 2: Both the assertion and reason are correct but not related.

Option 3: The assertion is correct, but the reason is incorrect.

Option 4: The assertion is incorrect, but the reason is correct.