Question : Assertion: The demand for essential goods like food and water is generally inelastic.
Reason: Essential goods have limited substitutes, and consumers are willing to purchase them regardless of price changes.
Option 1: Both the assertion and reason are correct and related.
Option 2: Both the assertion and reason are correct but not related.
Option 3: The assertion is correct, but the reason is incorrect.
Option 4: The assertion is incorrect, but the reason is correct.
Correct Answer: Both the assertion and reason are correct and related.
Solution : The correct answer is (A) Both the assertion and reason are correct and related.
The assertion states that the demand for essential goods like food and water is generally inelastic. This is correct because essential goods are often necessary for survival and have limited substitutes. As a result, consumers are less responsive to changes in their prices and are willing to purchase them regardless of price changes.
The reason states that essential goods have limited substitutes, and consumers are willing to purchase them regardless of price changes. This reason supports the assertion that the demand for essential goods is generally inelastic. When goods have limited substitutes and are considered necessary, consumers are less likely to adjust their demand significantly in response to changes in price.
Hence, both the assertion and the reason are correct and related.
