Question : If coffee and milk are complementary, which of the following will happen if coffee prices rise? a) The amount of coffee demanded will increase. b) The amount of coffee supplied will be reduced.
Option 1: A true
Option 2: B true
Option 3: Both A and B are true
Option 4: Both are false
Correct Answer: B true
Solution : The cross elasticity of demand for complementary goods will be negative. When the price of one good rise, the demand for both complementary goods falls. The amount of coffee supplied will be reduced. Hence B is true.
Question : Statement 1: Richard defined entrepreneur as the agent who buys means of production at certain prices in order to sell the produce at uncertain prices in the future. Statement 2: Entrepreneurship is a systematic, purposeful activity of identifying a need.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Question : Which of the following statement are true?
Option 1: Both are true.
Option 2: Both are false.
Option 3: Statement 1 is true, statement 2 is false.
Option 4: Statement 1 is false, statement 2 is true.
Question : Assertion: The desire for complementary commodities is shared. Reason: In order to fulfill a specific need, complementary goods are simultaneously demanded.
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 (A): Complementary goods are demanded simultaneously to satisfy a particular want. Reason (R): Complementary goods have joint demand
Question : Assertion (A): Complementary goods have joint demand. Reason (R): In order to fulfill a specific need, complementary commodities are simultaneously desired.
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
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