Question

Assertion (A): If the income of a consumer increases, other things constant, the demand curve for a normal goods shifts to the right.

Reason (R): As income increases, the demand curve for an inferior good shifts to the left.

Options

• As income increases, the demand curve for an inferior shifts to the left.

• 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).