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Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): Government imposes price floor to protect the interest of the producers.
Reason (R): Price floor makes the goods beneficial for the sellers to sell in the market.
- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false.
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'B'. Can you explain this answer?
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Direction: In the following questions, a statement of Assertion (A) i...
The government imposes lower limit on the price that may be charged for a particular good or service is called price floor. When equilibrium price determined by market forces of demand and supply is considered to be unremunerative for the producer, the government intervenes to protect the interest of producers.
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Direction: In the following questions, a statement of Assertion (A) i...
Assertion (A): Government imposes price floor to protect the interest of the producers.
Reason (R): Price floor makes the goods beneficial for the sellers to sell in the market.
The correct answer is option 'B' - Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
Explanation:
Price Floor: A price floor is a minimum price set by the government or any other authority above the equilibrium price in a market. It is typically set to protect the interests of producers or suppliers.
Assertion (A): Government imposes price floor to protect the interest of the producers.
This statement is true. The government may impose a price floor to ensure that producers receive a minimum price for their goods or services. This helps protect the interests of producers by guaranteeing them a certain level of income and preventing prices from falling too low.
Reason (R): Price floor makes the goods beneficial for the sellers to sell in the market.
This statement is also true. When a price floor is set above the equilibrium price, it creates a surplus in the market. This surplus benefits sellers or producers as they are able to sell their goods at a higher price than they would have in a free market. Sellers are incentivized to produce more, leading to an increase in supply.
However, Reason (R) is not the correct explanation of Assertion (A). While it is true that a price floor makes goods beneficial for sellers, it does not directly explain why the government imposes a price floor. The government's objective in imposing a price floor is to protect the interests of producers, ensuring that they receive a minimum income. The benefit to sellers is a consequence of the price floor, but not the primary reason for its implementation.
In conclusion, both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). The primary objective of the government in imposing a price floor is to protect the interests of producers.
Reason (R): Price floor makes the goods beneficial for the sellers to sell in the market.
The correct answer is option 'B' - Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
Explanation:
Price Floor: A price floor is a minimum price set by the government or any other authority above the equilibrium price in a market. It is typically set to protect the interests of producers or suppliers.
Assertion (A): Government imposes price floor to protect the interest of the producers.
This statement is true. The government may impose a price floor to ensure that producers receive a minimum price for their goods or services. This helps protect the interests of producers by guaranteeing them a certain level of income and preventing prices from falling too low.
Reason (R): Price floor makes the goods beneficial for the sellers to sell in the market.
This statement is also true. When a price floor is set above the equilibrium price, it creates a surplus in the market. This surplus benefits sellers or producers as they are able to sell their goods at a higher price than they would have in a free market. Sellers are incentivized to produce more, leading to an increase in supply.
However, Reason (R) is not the correct explanation of Assertion (A). While it is true that a price floor makes goods beneficial for sellers, it does not directly explain why the government imposes a price floor. The government's objective in imposing a price floor is to protect the interests of producers, ensuring that they receive a minimum income. The benefit to sellers is a consequence of the price floor, but not the primary reason for its implementation.
In conclusion, both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). The primary objective of the government in imposing a price floor is to protect the interests of producers.
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Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Government imposes price floor to protect the interest of the producers.Reason (R): Price floor makes the goods beneficial for the sellers to sell in the market.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer?
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Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Government imposes price floor to protect the interest of the producers.Reason (R): Price floor makes the goods beneficial for the sellers to sell in the market.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Government imposes price floor to protect the interest of the producers.Reason (R): Price floor makes the goods beneficial for the sellers to sell in the market.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Government imposes price floor to protect the interest of the producers.Reason (R): Price floor makes the goods beneficial for the sellers to sell in the market.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer?.
Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Government imposes price floor to protect the interest of the producers.Reason (R): Price floor makes the goods beneficial for the sellers to sell in the market.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Government imposes price floor to protect the interest of the producers.Reason (R): Price floor makes the goods beneficial for the sellers to sell in the market.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Government imposes price floor to protect the interest of the producers.Reason (R): Price floor makes the goods beneficial for the sellers to sell in the market.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer?.
Solutions for Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Government imposes price floor to protect the interest of the producers.Reason (R): Price floor makes the goods beneficial for the sellers to sell in the market.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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