Question : Assertion: If price falls and quantity demanded increases, this is represented by a movement along a given demand curve. Reason: If price falls and quantity demanded increases, this is represented by a shift of the demand curve.
Option 1: A correct R false
Option 2: A false R correct
Option 3: A correct R explains A
Option 4: A correct R does not explain A
Correct Answer: A correct R false
Solution : If price falls and quantity demanded increases, this is represented by a movement along a given demand curve. And when there is a fall in price then demand will be increased and there will movement in the demand curve not shifting. Hence A correct R false.
Question : Assertion: Shift of demand curve due to change in price. Reason: Price and demand are directly related to the price.
Question : "A change in demand" most strongly suggests a -
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.
Question : Assertion: When the price of a product increases by 10% and its quantity demanded decreases by 10%, the price elasticity of demand is -1.
Reason: Price elasticity of demand measures the percentage change in quantity demanded divided by the percentage change in
Question : Assertion: When the price of a product increases by 10%, and the quantity demanded decreases by 20%, the price elasticity of demand is 0.5.
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