Question : Assertion (A): Demand elasticity is higher for durable commodities. Reason (R): Demand for durable goods can be postponed once they are demanded at present.
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: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Solution : In the field of economics, durable goods are those that continue to provide consumers with services for a number of years to come. Additionally, they can be kept in storage for longer periods of time due to their durability. The reason why customers' desire for durable items is more volatile, or that it varies greatly, is because they are used for relatively long periods of time. The price elasticity of demand for durable goods is generally more elastic in the short run than in long run. Hence option a is the correct answer.
Question : Assertion (A): Demand elasticity is higher for durable commodities. Reason (R): Once durable items are in high demand now, their demand can be delayed.
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.
Question : Assertion: The desire for complementary commodities is shared. Reason: In order to fulfill a specific need, complementary goods are simultaneously demanded.
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.
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