Question : Assertion: When the price of a good decrease, its quantity demanded increases. Reason: The law of demand states an inverse relationship between price and quantity demanded.
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 when the price of a good decreases, its quantity demanded increases. This is a basic principle of economics and is supported by the law of demand, which states that there is an inverse relationship between the price of a good and the quantity demanded. When the price of a good decreases, consumers are generally willing and able to buy more of that good, resulting in an increase in the quantity demanded.
Therefore, the assertion and reason are both correct and related.
Question : Assertion: When the price of a product decreases, its quantity demanded increases.
Reason: The law of demand states an inverse relationship between price and quantity demanded.
Question : Assertion: When the price of a good decreases, its quantity demanded increases.
Question : Assertion: The law of supply states that as the price of good increases, the quantity supplied of that good also increases.
Reason: The law of supply is based on the positive relationship between price and quantity supplied, assuming other factors remain constant.
Question : Assertion (A): The price demand curve is negatively sloped. Reason (R): Inverse relationship between price and demand is stated by the law of demand, holding all other parameters constant.
Question : Assertion (A): The price-demand curve has a downward slope. Reason (R): Inverse relationship between price and demand is stated by the law of demand, holding all other parameters constant.
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