Read the following statements - Assertion (A) and Reasoning (R):
Assertion: There can be a shift in the demand curve in an outward direction.
Reasoning: When there is a change in some factor other than the price of the commodity, it leads to movements along the demand curve.
From the given alternatives choose the correct one:
Answer & explanation
Correct answer: option 3
Any change in the price of the commodity itself leads to movements along the demand curve. On the other hand, changes in the other things (other than the price of the commodity itself) leads to a shift in the demand curve. This shift can be inwards or outwards.