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.
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A)
Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A)
Option 3: Assertion (A) is true but Reason (R) is False
Option 4: Assertion (A) is False but Reason (R) is True
Correct Answer: Assertion (A) is False but Reason (R) is True
Solution :
When the price changes, there is a shift along the demand curve. This might happen as a result of altered demand circumstances. Demand-influencing variables are taken to remain constant. A shift in price causes a shift along the demand curve, which is known as a shift in the quantity demanded.
The quantity demanded decreases as the price of the good rises. It causes the demand curve to incline upward. It is sometimes referred to as demand contraction.
Hence option d is the correct answer.
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