Advertisements
Advertisements
Question
Read the following statements carefully and choose the correct alternative from the following:
Statement 1: Demand is a stock variable.
Statement 2: Demand for a commodity is meaningless without reference to its price.
Options
Both the Statements are True.
Both the Statements are False.
Statement 1 is True & Statement 2 is False.
Statement 2 is True & Statement 1 is False.
MCQ
Advertisements
Solution
Statement 2 is True & Statement 1 is False.
Explanation:
Demand is a flow variable because it is measured over a period of time, so Statement 1 is false. Demand must be stated with reference to price, so Statement 2 is true.
shaalaa.com
Is there an error in this question or solution?
