Assertion(A): When demand is 'inelastic', we mean that quantity d… - Vidyadip

MCQ

Assertion(A): When demand is 'inelastic', we mean that quantity demanded does not change at all in response to a price change..
Reason(R): Demand for a commodity is said to inelastic for which price change causes relatively smaller change in quantity demanded.

A
Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A)..
B
Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion(A).
C
Assertion(A) is true but Reason(R) is false.
✓
Assertion(A) is false but Reason(R) is true.

✓

Answer

Correct option: D.

Assertion(A) is false but Reason(R) is true.

D

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "Assertion (A) & Reason (B) MCQ" from Elasticity of Demand→Elasticity of Demand — all question types→Economics STD 10 question papers→ICSE Board STD 10 question papers→ICSE Board question paper generator→

Similar questions

Statement (1) : Postal charges are an example of commercial source of public revenue.
Statement (2) : Fares and freights charged by the railways are an example of administrative revenue.

→

Assertion(A): Commercial banks are profit based financial institutions.
Reason(R): Commercial banks accept deposits to make loans and advances at higher interest rates than they pay to the depositors.

Assertion(A): The demand for necessary goods is generally elastic.
Reason(R): Necessary goods are bought in fixed quantities irrespective of their prices.

Assertion(A) : AGMARK is used for industrial goods.
Reason(R) : For gold jewellery 'Hallmark' is provided for standardisation.

→

Statement (1): Public debt repayable within one year is a short term debt.
Statement (2): Long term loans are paid back in 5 years or more.

→

Assertion(A): A veblen good is one for which demand increases as the price increases, ate Windows.
Reason(R): Coarse cereals and tonned milk are examples of veblen goods.

Assertion(A): Under monopolistic competition the consumers have the preference of choosing one product over another.
Reason(R): The sellers can charge a marginally higher price since they may enjoy some market price.

Assertion(A) : A progressive tax takes a larger percentage of income from high income groups.
Reason(R) : A regressive tax takes a larger percentage of income from low income groups.

→

Statement (1): SLR is determined by the central bank.
Statement (2): CRR is fixed by the commercial banks.

Statement (1): An increase in CRR reduces the cash reserves of commercial banks.
Statement (2): Commercial banks are required to maintain CRR in the form of cash reserves.