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Management · Q144

Managerial Economics

Graduate and Post Graduate · Management · question 144

Q144

Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer. Assertion (A) A price reduction leads to an increase in the quantity demanded of the commodity. Reason (R) It results from price effects comprising income and substitutions effects which are always positive.

A.
Both (A) and (R) are correct and (R) is the right explanation of (A)
B.
Both (A) and (R) are correct, but (R) is not the right explanation of (A)
C.
(A) is correct, but (R) is incorrect
Answer
D.
Both (A) and (R) are incorrect

Answer: Option C

Solution

Answer: Option C
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