Question : Assertion: The price elasticity of demand for a product can vary along its demand curve.

Reason: The price elasticity of demand depends on the slope and shape of the demand curve.

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 price elasticity of demand for a product can vary along its demand curve. This is correct. Price elasticity of demand measures the responsiveness of quantity demanded to changes in price. The elasticity can vary at different price points along the demand curve due to differences in consumer behavior and sensitivity to price changes. For example, demand may be more elastic at higher prices and less elastic at lower prices.

The reason provided states that the price elasticity of demand depends on the slope and shape of the demand curve. This reason is also correct and supports the assertion. The slope and shape of the demand curve reflect the responsiveness of quantity demanded to changes in price. A steeper slope indicates a more elastic demand, while a flatter slope indicates a more inelastic demand. The elasticity is influenced by the shape of the curve, which can vary based on factors such as the availability of substitutes, consumer preferences, and market conditions.

Therefore, both the assertion and reason are correct and related. The price elasticity of demand can indeed vary along the demand curve based on the slope and shape of the curve, as explained by the reason.