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Question
Read the following statements carefully and choose the correct alternative from the following:
Statement 1: Slope of the demand curve measures its flatness or steepness.
Statement 2: Inferior goods always follow the law of demand, while the law of demand may fail in case of normal goods.
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
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Solution
Statement 1 is True & Statement 2 is False.
Explanation:
Statement 1 is true: the slope indicates the flatness or steepness of the demand curve. Statement 2 is false: the law of demand may fail for some inferior goods, while normal goods generally follow it.
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