Question

In the following Question, read the following statement: Assertion (A) and Reason (R). Choose the correct alternative among those given below:

Assertion (A): Change in quantity demanded of one commodity due to a change in price of other commodity is cross demand.

Reason (R): Changes in consumer income leads to a change in demand.

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

Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).

Explanation:

Both statements are true. Cross demand concerns how the price of a related good affects demand for a commodity; changes in consumer income can also change demand, but do not explain cross demand.