Question : Assertion (A)The demand for a commodity and its price are inversely correlated.
Reason (R): A demand curve is a graphic representation of the demand schedule that demonstrates the correlation between a commodity's price and demand.
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 :
A demand curve is a graphical representation of the demand schedule. It demonstrates the relationship between an item's price and the quantity of that commodity that a consumer is willing to buy.
A commodity's demand and price are inversely connected, other things being equal.
It implies that a commodity's demand decreases in response to an increase in its price and vice versa.
Hence option b is the correct answer.
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