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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): The percentage change in quantity supplied is 20% and the percentage change in price is 20%. Thus the elasticity of supply is 1.
Reason (R): The commodity supplied has unitary elastic supply and its supply curve will be upward rising.
- 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 upward shift represents the fact that supply often decreases when the costs of production increase, so producers need to get a higher price than before in order to supply a given quantity of output.
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Direction: In the following questions, a statement of Assertion (A) i...
Assertion (A): The percentage change in quantity supplied is 20% and the percentage change in price is 20%. Thus the elasticity of supply is 1.
Reason (R): The commodity supplied has unitary elastic supply and its supply curve will be upward rising.
Explanation:
Definition of Price Elasticity of Supply:
Price elasticity of supply measures the responsiveness of the quantity supplied to a change in price. It is calculated as the percentage change in quantity supplied divided by the percentage change in price.
Calculation of Elasticity of Supply:
In this case, the percentage change in quantity supplied is 20% and the percentage change in price is also 20%. Therefore, we can calculate the elasticity of supply using the formula:
Elasticity of Supply = Percentage Change in Quantity Supplied / Percentage Change in Price
= 20% / 20%
= 1
Explanation of Assertion (A):
The statement in Assertion (A) is true because the calculated elasticity of supply is indeed 1, which means that the quantity supplied is perfectly responsive to changes in price. A 20% change in price results in a 20% change in quantity supplied, indicating unitary elastic supply.
Explanation of Reason (R):
The statement in Reason (R) is also true. When a commodity has unitary elastic supply, its supply curve will be upward rising. This means that as the price of the commodity increases, the quantity supplied by the producers also increases. Similarly, as the price decreases, the quantity supplied decreases.
Conclusion:
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). Although the commodity supplied has unitary elastic supply as indicated by the upward rising supply curve, this fact alone does not explain why the elasticity of supply is 1 in this specific scenario where the percentage change in quantity supplied is 20% and the percentage change in price is 20%. The correct explanation lies in the calculation of elasticity of supply, which directly compares the percentage changes in quantity supplied and price.
Reason (R): The commodity supplied has unitary elastic supply and its supply curve will be upward rising.
Explanation:
Definition of Price Elasticity of Supply:
Price elasticity of supply measures the responsiveness of the quantity supplied to a change in price. It is calculated as the percentage change in quantity supplied divided by the percentage change in price.
Calculation of Elasticity of Supply:
In this case, the percentage change in quantity supplied is 20% and the percentage change in price is also 20%. Therefore, we can calculate the elasticity of supply using the formula:
Elasticity of Supply = Percentage Change in Quantity Supplied / Percentage Change in Price
= 20% / 20%
= 1
Explanation of Assertion (A):
The statement in Assertion (A) is true because the calculated elasticity of supply is indeed 1, which means that the quantity supplied is perfectly responsive to changes in price. A 20% change in price results in a 20% change in quantity supplied, indicating unitary elastic supply.
Explanation of Reason (R):
The statement in Reason (R) is also true. When a commodity has unitary elastic supply, its supply curve will be upward rising. This means that as the price of the commodity increases, the quantity supplied by the producers also increases. Similarly, as the price decreases, the quantity supplied decreases.
Conclusion:
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). Although the commodity supplied has unitary elastic supply as indicated by the upward rising supply curve, this fact alone does not explain why the elasticity of supply is 1 in this specific scenario where the percentage change in quantity supplied is 20% and the percentage change in price is 20%. The correct explanation lies in the calculation of elasticity of supply, which directly compares the percentage changes in quantity supplied and price.
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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): The percentage change in quantity supplied is 20% and the percentage change in price is 20%. Thus the elasticity of supply is 1.Reason (R): The commodity supplied has unitary elastic supply and its supply curve will be upward rising.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): The percentage change in quantity supplied is 20% and the percentage change in price is 20%. Thus the elasticity of supply is 1.Reason (R): The commodity supplied has unitary elastic supply and its supply curve will be upward rising.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): The percentage change in quantity supplied is 20% and the percentage change in price is 20%. Thus the elasticity of supply is 1.Reason (R): The commodity supplied has unitary elastic supply and its supply curve will be upward rising.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): The percentage change in quantity supplied is 20% and the percentage change in price is 20%. Thus the elasticity of supply is 1.Reason (R): The commodity supplied has unitary elastic supply and its supply curve will be upward rising.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): The percentage change in quantity supplied is 20% and the percentage change in price is 20%. Thus the elasticity of supply is 1.Reason (R): The commodity supplied has unitary elastic supply and its supply curve will be upward rising.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): The percentage change in quantity supplied is 20% and the percentage change in price is 20%. Thus the elasticity of supply is 1.Reason (R): The commodity supplied has unitary elastic supply and its supply curve will be upward rising.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): The percentage change in quantity supplied is 20% and the percentage change in price is 20%. Thus the elasticity of supply is 1.Reason (R): The commodity supplied has unitary elastic supply and its supply curve will be upward rising.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): The percentage change in quantity supplied is 20% and the percentage change in price is 20%. Thus the elasticity of supply is 1.Reason (R): The commodity supplied has unitary elastic supply and its supply curve will be upward rising.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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