Multiple choice

Statements: Assertion (A): Demand for a commodity refers to quantity of the commodity demanded at a certain price during any particular period of time. Reason (R): Contraction of demand is the result of increase in the price of the good concerned.

  1. Both (A) and (R) are correct

  2. Both (A) and (R) are incorrect

  3. (A) is correct hut (R) is incorrect

  4. (A) is incorrect but (R) is correct
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Assertion (A) correctly defines demand as quantity demanded at a specific price during a time period. Reason (R) correctly states that contraction of demand occurs when price increases - this is the law of demand in action, where higher price leads to lower quantity demanded. Both statements are accurate economic principles.

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