Question

Assertion (A): Price elasticity of supply is less than one in the case of inelastic supply.

Reason (R): Percentage change in price is less than the percentage change in the quantity supplied.

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, but 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 true, but Reason (R) is false.

Explanation:

The assertion is true: inelastic supply has elasticity less than 1. The reason is false because in inelastic supply, the percentage change in quantity supplied is less than the percentage change in price.