Question

Assertion (A): A change in supply implies that a larger or smaller quantity will be supplied at the same price.

Reason (R): Price is the sole determinant of change in supply.

Options

• 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 true but Reason (R) is false.

Explanation:

The assertion is true because a “change in supply” refers to an increase or decrease in supply caused by non-price causes, meaning that a larger or less quantity is available for sale at the same price. The reason is false because a change in supply is caused by variables other than price (such as technology, input prices, or government taxation), whereas changes in the commodity’s price induce a change in the quantity supplied (movements along the curve).