Question : Assertion (A): The price demand curve is negatively sloped.
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 :
One cornerstone of contemporary economics is the law of supply and demand. This idea states that the amount offered and the price of a good are inversely connected. This makes sense for many products since when prices rise, fewer people will be able to purchase them, which will reduce demand.
The price-demand curve has a downward slope.
Hence option a is the correct answer.
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