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Question
In the following Question, read the following statement: Assertion (A) and Reason (R). Choose the correct alternative among those given below:
Assertion (A): Expansion in Demand leads to an upward movement along the same demand curve.
Reason (R): Upward movement along the same demand curve occurs due to an increase in price of the given commodity.
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 ® is False.
Assertion (A) is False but Reason (R) is True.
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Solution
Assertion (A) is False but Reason (R) is True.
Explanation:
The assertion is false: expansion in demand follows a fall in price and causes a downward movement along the same curve. The reason is true: a price increase causes an upward movement, called contraction in demand.
