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.
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