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Management · Q65

Managerial Economics

Graduate and Post Graduate · Management · question 65

Q65

From the following two statements of Assertion (A) and Reasoning (R), indicate the correct option. Assertion (A) The quantity of a product 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 correct
B.
Both (A) is incorrect, but (R) is correct
Answer
C.
Both (A) is correct, but (R) is incorrect
D.
Both (A) and (R) are incorrect

Answer: Option B

Solution

Answer: Option B
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