Question

Assertion (A): Increase in supply will lead to an upward movement along the supply curve.

Reason (R): Expansion of supply is due to a rise in the own price of the commodity.

विकल्प

• 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).

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

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

Answer 1

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

Explanation:

The assertion is false because a “increase in supply” is caused by favorable non-price factors (such as decreased input prices) and results in a physical rightward shift of the entire curve, rather than a movement along it. The reason is true that an upward movement along the supply curve is technically referred to as “expansion of supply”, which is generated only by an increase in the commodity’s market price. As a result, the assumption misidentifies a curve change with a price-driven movement.