Question : Assertion: A consumer's Engel curve for a normal good is upward-sloping.
Reason: As the consumer's income increases, their demand for a normal good also increases.
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.
Correct Answer: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Solution : The correct option is (a) Option A Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
The assertion states that a consumer's Engel curve for a normal good is upward-sloping. This means that as the consumer's income increases, their demand for the normal good also increases. This is because a normal good is one for which demand increases as income increases.
The reason provided states that as the consumer's income increases, their demand for a normal good also increases. This is a correct explanation of the upward-sloping nature of the Engel curve for normal goods. As the consumer's income rises, they have more purchasing power, which allows them to afford more of the normal good and thus increases their demand for it.
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