Question : Assertion: Inelastic demand means that the quantity demanded is not responsive to changes in price.
Reason: Inelastic demand occurs when consumers are highly sensitive to price changes.
Option 1: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Option 2: Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.
Option 3: The assertion is true, but the reason is false.
Option 4: The assertion is false, but the reason is true.
Correct Answer: The assertion is true, but the reason is false.
Solution : The correct answer is (c) The assertion is true, but the reason is false.
The assertion is true. Inelastic demand refers to a situation where a change in price leads to a proportionately smaller change in quantity demanded. In other words, when demand is inelastic, consumers are less responsive to changes in price, and the quantity demanded does not vary significantly in response to price changes.
However, the reason provided is false. Inelastic demand actually occurs when consumers are less sensitive or responsive to price changes. When demand is inelastic, consumers are relatively insensitive to price fluctuations, and their purchasing behavior is not heavily influenced by price variations.
Therefore, the correct answer is (c) The assertion is true, but the reason is false.
Question : Assertion: Elasticity of supply measures the responsiveness of quantity supplied to changes in price.
Reason: Elastic supply occurs when producers are less responsive to changes in price.
Question : Assertion: Perfectly inelastic demand implies that consumers are unresponsive to changes in price.
Reason: In perfectly inelastic demand, the quantity demanded remains the same regardless of price changes.
Question : Assertion: The demand for a product is perfectly inelastic when quantity demanded remains constant regardless of price changes.
Reason: Perfectly inelastic demand occurs when the price elasticity of demand is zero.
Question : Assertion: The price elasticity of demand for a perfectly inelastic demand curve is zero.
Reason: A perfectly inelastic demand curve is vertical, indicating that quantity demanded does not change regardless of price changes.
Question : Assertion: Cross demand occurs when the amount of one good is changed because the price of another one has changed. Reason: Demand changes as a result of changes in consumer income.
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