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प्रश्न
Assertion (A): Demand for a commodity with large number of substitutes with be less elastic.
Reason (R): With large number of substitutes, even a small rise in its price will induce the buyers to go for its substitutes.
पर्याय
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.
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उत्तर
Assertion (A) is false but Reason (R) is true.
Explanation:
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Assertion (A) is false: The demand for a commodity with many substitutes is more elastic, not less elastic. Consumers can easily switch to a substitute if the commodity's price increases.
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Reason (R) is true: With many substitutes available, even a small rise in the price of the commodity will likely cause buyers to switch to its substitutes, making the demand for the original commodity more elastic.
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संबंधित प्रश्न
Write Short note on the following.
Ratio method of measuring price elasticity of demand ?
Match the following:
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Group A
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Group B
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1. Cars and petrol
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a. Elastic demand
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2. Point method
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b. Complementary
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3. Necessary goods
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c. Geometric method
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d. Inelastic demand
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State whether demand will be Elastic or Inelastic. Give reasons for your answer.
A consumer prefers to postpone the purchase of a car to avail more of year ending discount.
What is the implication of a vertical demand curve?
The nature of a commodity determines its price elasticity of demand. Explain.
How does the availability of substitutes of a commodity affect its price elasticity of demand?
State 3 factors which affect price elasticity of demand.
Discuss any three/ four factors determining price elasticity of demand.
Which of the following correctly describes the relationship between availability of substitutes and price elasticity of demand?
