Practicing Success
Assertion: Price elasticity of demand always measures the percentage change in quantity demanded to the percentage change in the price of the commodity. |
Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A. Both Assertion (A) and reasoning (R) are correct and but R is not correct explanation of A. Assertion (A) is true but Reasoning (R) is not correct. Assertion (A) is not true but Reasoning (R) is correct. |
Assertion (A) is true but Reasoning (R) is not correct. |
The correct answer is Option 3: Assertion (A) is true but Reasoning (R) is not correct. Assertion: Price elasticity of demand always measures the percentage change in quantity demanded to the percentage change in the price of the commodity. This is correct. Price elasticity of demand is a measure of the responsiveness of the demand for a good to changes in its price. Ped = \(\frac{\text {percentage change in the quantity demanded of the good }}{\text{percentage change in price of the good} }\) |