Question : Law of Demand states that there is a negative relationship between ______.

Option 1: demand for a commodity and its supply

Option 2: demand for a commodity and its price

Option 3: tax on a commodity and its price

Option 4: supply of a commodity and its price

Question : Which of the following are the assumptions of the law of Demand?

Option 1: Price remains unchanged

Option 2: Income remains unchanged 

Option 3: The price of related goods is changed 

Option 4: A change in taste and preferences 

Question : The law of demand states that:

Option 1: if the price of a good increases, the demand for that good decreases

Option 2: if the price of a good increases, the demand for that good increases

Option 3: if the price of a good increases, the quantity demanded of that good decreases

Option 4: if the price of a good increases, the quantity demanded of that good increases

Question : The law of demand states that when _____.

Option 1: income and price rise demand rises

Option 2: income rises demand rises

Option 3: price rises demand rises

Option 4: price falls demand rises

Question : Assertion: The law of supply states that as the price of good increases, the quantity supplied of that good also increases.

Reason: The law of supply is based on the positive relationship between price and quantity supplied, assuming other factors remain constant.

Option 1: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.

Option 2: Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.

Option 3: The assertion is true, but the reason is false.

Option 4: The assertion is false, but the reason is true.