Question

Assertion (A): The demand for commodities like salt, matches etc. is highly elastic.

Reason (R): The demand for commodities like salt, matches etc. is highly inelastic because the consumer spends a very small amount of expenditure in relation to his/her income.

Options

• (A) is true but (R) is false.

• A is false but (R) is true.

• Both (A) and (R) are true and (R) is the correct explanation of (A).

• Both (A) and (R) are true but (R) is not the correct explanation of (А).

Answer 1

A is false but (R) is true.

Explanation:

The assertion is false since the demand for low-cost everyday essentials such as salt and matches is highly inelastic, which means that consumption does not change considerably as costs fluctuate. Reasoning is true because consumers spend only a small portion of their total income on these things, making them very insensitive to price changes and directly explaining why demand stays inelastic.