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.
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 :
Demand elasticity is higher for durable commodities.
Compared to the market for non-durable goods, the demand for durable goods is more erratic. 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.
Hence option a is the correct answer.
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