Question

Assertion and Reasoning type of question:

• Assertion (A): The degree of price elasticity is less than one in case of relatively inelastic demand.
• Reasoning (R): The change in demand is less than the change in price.

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 and (R) is not the correct explanation of (A).

Answer 1

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