Read the following statements - Assertion (A) and Reasoning (R):
Assertion: Though demand for food like pulses is inelastic, the demands for specific variety of pulses is likely to be more elastic.
Reasoning: People can shift to some other variety of pulses which is a close substitute.
From the given alternatives choose the correct one:

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

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

 Explanation:

Assertion (A) states that demand for specific varieties of pulses is likely to be more elastic than the overall demand for food like pulses. This is true because while the overall demand for food like pulses may be inelastic (meaning consumers are less responsive to changes in price), the demand for specific varieties of pulses can be more elastic due to the availability of close substitutes.

Reasoning (R) provides a valid explanation for Assertion (A). If people can easily shift to another variety of pulses that serves as a close substitute, they are more likely to be responsive to changes in the price of a specific variety. This makes the demand for specific varieties of pulses more elastic.

The demand for food (pulses in this case) as a whole is inelastic but the demand for specific kind of food (specif pulse) tends to be elastic. People must eat to survive, so for any population there is a basic nutritional requirement. In developed countries, most people can afford more food than others, but there is a limit to how much one can eat even when food is cheap. Since the population’s overall demand for food doesn’t change a lot with price - demand is “Inelastic” (i.e. it doesn’t stretch).

But things change when considering specific foods. People can switch from one food to another based on price; from mutton to chicken, for example, or from rice to wheat. So when mutton prices jump, consumers can reduce their purchases of mutton and eat more chicken. The demand for mutton is “Elastic” when there are good alternatives.

Similarly, the demand for goods like pulses is inelastic reason being the nature of the product. As, it is a necessity, any change in price does not effect the quantity to a large extent. Either no change is there or a very miniscule change can be observed. Whereas, if we talk about different types of pulses, the demand for that can be considered relatively more elastic due to availability of substitutes in the market.