Economics Assertion and Reasoning

Assertion (A) – Increase in demand refers rise in quantity demanded due to favourable changes in other factors and price remains constant.
Reasoning (R) – Decrease in demand refers to fall in quantity demand due to unfavourable changes in other factors and price remains constant.
(i) (A) is true but (R) is false.
(ii) (A) is false but (R) is true.
(iii) Both (A) and (R) is true and (R) is the correct explanation of (A).
(iv) Both (A) and (R) is True but (R) is not the ) correct explanation of (A).

Assertion (A) – Variations in demand refers to change in quantity demanded due to change in price alone and other factors remain constant.
Reasoning (R) – Increase in demand and decrease in demand are the types of variations in demand.
(i) (A) is true but (R) is false.
(ii) (A) is false but (R) is true.
(iii) Both (A) and (R) is true and (R) is the correct explanation of (A).
(iv) Both (A) and (R) is true but (R) is not the correct explanation of (A).

Assertion (A) – If consumer can anticipate the future price of a commodity then it will affect the present demand of a commodity. Reasoning (R) – Ram buy’s less mangoes in anticipation of getting it at cheaper rate in further date. (i) (A) is true but (R) is false. (ii) (A) is false but (R) is true. (iii) Both (A) and (R) is true and (R) is the correct explanation of (A). (iv) Both (A) and (R) is true but (R) is not the correct explanation of (A).

Assertion (A) – Demand curve slopes downwards from left to right. Reasoning (R) – The price of a commodity falls, quantity demanded rises and when S price of commodity rises, quantity demanded falls. (i) (A) is true but (R) is false. (ii) (A) is false but (R) is true. (iii) Both (A) and (R) is true and (R) is the correct explanation of (A). (iv) Both (A) and (R) is True but (R) is not the correct explanation of (A).

Assertion (A) – When the population size is larger, demand for commodity will be less. Reasoning (R) – Change in the price of one commodity would also affect the demand of substitute goods. (i) (A) is true but (R) is false. (ii) (A) is false but (R) is true. (iii) Both (A) and (R) is true and (R) is the correct explanation of (A). (iv) Both (A) and (R) is true but (R) is not the correct explanation of (A).

Assertion (A) – Indirect demand refers to the demand for goods and services which are needed for further production. Reasoning (R) – All factors of production have indirect or derived demand. (i) (A) is true but (R) is false. (ii) (A) is false but (R) is true. (iii) Both (A) and (R) is true and (R) is the correct explanation of (A). (iv) Both (A) and (R) is true but (R) is not the correct explanation of (A).

Assertion (A) – Marginal utility goes on diminishing with an increase in the stock of ) a commodity. I
Reasoning (R) – Purchasing power of a consumer increases when the price of a commodity increases. 5-
(i) (A) is true but (R) is false.
(ii) (A) is false but (R) is true.
(iii) Both (A) and (R) is true and (R) is the correct l explanation of (A).
(iv) Both (A) and (R) is true but (R) is not the ( correct explanation of (A).

Assertion (A) – Individual demand refers to the quantity of a commodity demanded by particular consumer.
Reasoning (R) – Market demand refers to the total demand for commodity from all the consumers.
(i) (A) is true but (R) is false.
(ii) (A) is false but (R) is true. .
(iii) Both (A) and (R) is true and (R) is the correct explanation of (A).
(iv) Both (A) and (R) is true but (R) is not the correct explanation of (A).