Read the following statements - Assertion (A) and Reason (R):

Assertion: Transformation curve is downward sloping from left to right.
Reasoning: If we want to have more of one of the goods, we will have less of the other good (due to given resources and technology, which are fixed)
From the given alternatives choose the correct one:

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

The correct answer is Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

• Assertion (A) is true: The transformation curve, also known as the production possibility frontier (PPF), is typically downward sloping from left to right. This slope reflects the concept of opportunity cost.
• Reason (R) is true: Limited resources and technology do constrain production possibilities. To produce more of one good, you must give up some production of the other good.

Since the resources are fixed, we can produce limited quantities of the commodities. In order to produce more of one commodity, we have to reduce the quantity of another commodity. This leads to a negative relation between the quantities to be produced of different commodities. Thus, we have a downward sloping Production Possibility Curve. Thus, reason explain the assertion i.e. why the slope of PPC is downward sloping.