Question

Read the following statements carefully and choose the correct alternative from the following:

Statement 1: Demand is a stock variable.

Statement 2: Demand for a commodity is meaningless without reference to its price. 

विकल्प

• Both the Statements are True.

• Both the Statements are False.

• Statement 1 is True & Statement 2 is False.

• Statement 2 is True & Statement 1 is False.

Answer 1

Statement 2 is True & Statement 1 is False.

Explanation:

Demand is a flow variable because it is measured over a period of time, so Statement 1 is false. Demand must be stated with reference to price, so Statement 2 is true.