Assertion(A): When total expenditure remains constant due to incr… - Vidyadip

MCQ

Assertion(A): When total expenditure remains constant due to increase or decrease in price, elasticity of demand is equal to unity.
Reason(R): When price falls, total expenditure increases or price rises and total expenditure decreases, elasticity of demand is greater than one Alternatives.

A
Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).
✓
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.
D
Assertion(A) is false but Reason(R) is true.

✓

Answer

Correct option: B.

Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion(A).

B

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