Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

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:

Options:

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

Both Assertion (A) and Reasoning (R) are true and Reasoning (R) is not the correct explanation of Assertion (A).

Assertion (A) is true but Reasoning (R) is false.

Assertion (A) is false but Reasoning (R) is true.

Correct Answer:

Assertion (A) is true but Reasoning (R) is false.

Explanation:

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.