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
Correct Answer: Assertion (A) is False but Reason (R) is True
Solution : When the price changes, there is a shift along the demand curve. This might happen as a result of altered demand circumstances. Demand-influencing variables are taken to remain constant. A shift in price causes a shift along the demand curve, which is known as a shift in the quantity demanded. 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 d is the correct answer.
Question : Assertion (A): The demand curve for the market is flatter than the demand curve for an individual.
Reason (R): By horizontally summing individual demand, the market demand curve is created.
Question : Assertion (A)The demand for a commodity and its price are inversely correlated. Reason (R): A demand curve is a graphic representation of the demand schedule that demonstrates the correlation between a commodity's price and demand.
Question : Assertion (A): Demand elasticity is greater than one below the demand curve's midpoint on a straight line with a downward slope. Reason (R): The demand elasticity on a linear demand curve ranges from zero to infinity.
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.
Question : Assertion (A): Demand elasticity is greater than one below the demand curve's midpoint on a straight line with a downward slope. Reason (R): The elasticity of demand on a linear demand curve ranges from 0 to infinity.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile