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Commerce · Q1365

Economics

Graduate and Post Graduate · Commerce · question 1365

Q1365

Assertion (A) The quantity of a commodity demanded invariably changes inversely to changes in its price. Reason (R) The price effect is the net result of the positive substitution effect and negative income effect.

A.
Both (A) and (R) are true
Answer
B.
(A) is true, but (R) is false
C.
(A) is false, but (R) is true
D.
Both (A) and (R) are false

Answer: Option A

Solution

Answer: Option A
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