Question : Assertion (A): The price-demand curve has a downward slope.
Reason (R): Inverse relationship between price and demand is stated by the law of demand, holding all other parameters constant.
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 :
"Quantity demand of a product diminishes if the product's price increases," is how the law of demand is defined. That is, if a product's price increases, fewer people will buy it.
Another way to put it is that the downward slope of the demand curve emphasizes the asymmetry between price and quantity desired.
Hence option a is the correct answer.
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