Question : Assertion: Expansion in Demand leads to an upward movement along the same demand curve.
Reason: Upward movement along the same demand curve occurs due to an increase in the price of the given commodity.
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.
Correct Answer: The assertion is correct, but the reason is incorrect.
Solution : The correct answer is (C) The assertion is correct, but the reason is incorrect.
The assertion that expansion in demand leads to an upward movement along the same demand curve is correct. When demand for a commodity increases, it leads to a higher quantity demanded at each price level. This results in an upward shift along the demand curve.
However, the reason provided, which states that an upward movement along the same demand curve occurs due to an increase in the price of the given commodity, is incorrect. Changes in the price of a commodity lead to movements along the demand curve, not shifts. When the price of a commodity increases, it leads to a decrease in quantity demanded, resulting in a movement upwards along the existing demand curve. Conversely, a decrease in the price of a commodity leads to an increase in quantity demanded, resulting in a movement downwards along the demand curve.
In summary, the assertion is correct, but the reason provided to support it is incorrect.
Question : Which of the statements is true :- A: Expansion in Demand leads to an upward movement along the same demand curve. B: Upward movement along the same demand curve occurs due to an increase in the price of the given commodity.
Option 1: Only option A correct
Option 2: Option B is correct
Option 3: Both are correct
Option 4: Both are false
Question : Assertion: The same demand curve moves upward in response to an expansion in demand. Reason: A rise in the price of the specified commodity results in an upward movement along the same demand curve.
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
Question : Assertion: The price elasticity of demand for a product can vary along its demand curve.
Reason: The price elasticity of demand depends on the slope and shape of the demand curve.
Question : Assertion: The price elasticity of demand for a perfectly elastic demand curve is infinity.
Reason: A perfectly elastic demand curve is horizontal, indicating that the quantity demanded becomes infinite at a specific price.
Reason: A perfectly elastic demand curve is horizontal, indicating that quantity demanded becomes infinite at a specific price.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile