Question : Assertion (A): Sir Robert Giffen developed the Giffen goods theory. Reason (R): Giffen goods are those whose demand declines as their price drops.
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 not the correct explanation of Assertion (A)
Solution : Sir Robert Giffen developed the Giffen goods theory. Giffen products are inexpensive items, and when their prices rise, so does consumer demand. There are just a few alternatives for these products, which are essential to meeting our requirement for sustenance. Giffen products include things like wheat, rice, and bread. Hence both are correct so option b is the correct answer.
Question : Assertion (A): Complementary goods are demanded simultaneously to satisfy a particular want. Reason (R): Complementary goods have joint demand
Question : Assertion: Giffen goods violate the law of demand.
Reason: Giffen goods are inferior goods for which the income effect dominates the substitution effect, resulting in an upward-sloping demand curve.
Question : Assertion (A): Complementary goods have joint demand. Reason (R): In order to fulfill a specific need, complementary commodities are simultaneously desired.
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.
Question : Assertion (A): A new business is likely to have lesser goodwill. Reason (R): Goodwill is an intangible asset.
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