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.
Question : Assertion (A): Cross demand is positive in the case of substitute goods.
Reason (R): A drop in demand for particular commodity results from an increase in the price of substitute commodities.
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.
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.
Question : Assertion (A): Change in quantity demanded of one commodity due to a change in the price of another commodity is cross demand. Reason (R): Changes in consumer income leads to a change in demand.
Question : Assertion: The same demand curve moves upward in response to an expansion in demand. Reason: A rise in the price of the specified commodity results in an upward movement along the same demand curve.
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