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
Correct Answer: Option B is correct
Solution : The quantity demanded decreases as the price of the good rises. It causes the demand curve to incline upward. It is sometimes referred to as demand contraction. The quantity demanded decreases as the price of the good rises. It causes the demand curve to incline upward. It is sometimes referred to as demand contraction. Hence option b is correct
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.
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 : The demand curve displays an increase in demand when :
Option 1: Movement along the curve
Option 2: Movement along the curve there is no change.
Option 3: The curve shifts right
Option 4: The curve shifts left
Question : Assertion: Shift of demand curve due to change in price. Reason: Price and demand are directly related to the price.
Option 1: A correct R false
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: 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 2: A false R correct
Option 3: A correct R explains A
Option 4: A correct R does not explain A
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