Question

Assertion (A): The demand for necessary goods is generally elastic.

Reason (R): Necessary goods are bought in fixed quantities irrespective of their prices.

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 false but Reason (R) is true.

Explanation:

The assertion is false since the demand for necessary goods (such as salt, basic food, or life-saving pharmaceuticals) is generally inelastic rather than elastic, meaning that customers cannot simply modify their consumption as prices fluctuate. The reason is that requirements are essential for living, therefore purchasers are less sensitive to price variations and continue to buy in roughly the same fixed quantities regardless of whether the price grows or declines. As a result, the nature of necessary commodities makes the assertion false and the reasoning factually true.