Question : Assertion: If price falls and quantity demanded increases, this is represented by a movement along a given demand curve. Reason: If price falls and quantity demanded increases, this is represented by a shift of the demand curve.
Option 1: A correct R false
Option 2: A false R correct
Option 3: A correct R explains A
Option 4: A correct R does not explain A
Correct Answer: A correct R false
Solution : If price falls and quantity demanded increases, this is represented by a movement along a given demand curve. And when there is a fall in price then demand will be increased and there will movement in the demand curve not shifting. Hence A correct R false.
Question : Assertion: Shift of demand curve due to change in price. Reason: Price and demand are directly related to the price.
Option 2: A and R both are false
Option 3: A correct R and R explains A
Option 4: A false R is correct.
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: 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.
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.
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
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