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Question
Assertion (A): If the income of a consumer increases, other things constant, the demand curve for a normal goods shifts to the right.
Reason (R): As income increases, the demand curve for an inferior good shifts to the left.
Options
As income increases, the demand curve for an inferior shifts to the left.
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.
Solution
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
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RELATED QUESTIONS
The demand curve is generally ______.
The market demand curve is a ______ summation of all Individual demand curves:
Assertion (A): Demand curve is downward sloping.
Reason (R): Demand curve slopes downwards from left to the right because price and quantity demanded are inversely related.
Draw a neat labelled diagram of a demand curve.
Explain the following diagram:
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| Price per unit (₹) | 2 | 3 | 4 | 5 | 6 | 7 |
| Quantity demanded (Units) | 1000 | 800 | 700 | 600 | 500 | 200 |
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