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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): Elasticity of supply of gold is unitary elastic.
Reason (R): The unitary elastic supply is equal to 1.
- 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 'C'. Can you explain this answer?
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Direction: In the following questions, a statement of Assertion (A) i...
Unit Elastic Supply has a PES of 1, where quantity supplied change by the same percentage as the price change.
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Direction: In the following questions, a statement of Assertion (A) i...
Assertion (A): Elasticity of supply of gold is unitary elastic.
Reason (R): The unitary elastic supply is equal to 1.
The correct answer is option 'C', which states that Assertion (A) is true, but Reason (R) is false.
Explanation:
To understand why the correct answer is option 'C', let's first define the terms involved in the question.
Elasticity of Supply: Elasticity of supply measures the responsiveness of the quantity supplied of a commodity to a change in its price. It indicates how sensitive the supply is to changes in price.
Unitary Elasticity: When the percentage change in quantity supplied is equal to the percentage change in price, the elasticity of supply is said to be unitary elastic. In other words, unitary elastic supply is equal to 1.
Now, let's evaluate the Assertion (A) and Reason (R) given in the question.
Assertion (A): Elasticity of supply of gold is unitary elastic.
This statement is incorrect. The elasticity of supply of gold is not necessarily unitary elastic. The elasticity of supply depends on various factors such as production capacity, availability of inputs, technology, and time period. Gold is a natural resource, and its supply is limited. The availability of gold depends on factors like mining activity, exploration, and extraction. If the supply of gold cannot be easily increased or decreased in response to price changes, it would have an inelastic supply. If the supply of gold is highly responsive to price changes, it would have an elastic supply. Therefore, the elasticity of supply of gold can vary and is not necessarily unitary elastic.
Reason (R): The unitary elastic supply is equal to 1.
This statement is correct. Unitary elastic supply refers to a situation where the percentage change in quantity supplied is equal to the percentage change in price. In such a case, the elasticity of supply is equal to 1. However, this reason does not explain why the elasticity of supply of gold is unitary elastic. As discussed earlier, the elasticity of supply of gold depends on various factors and can vary.
In conclusion, while the Reason (R) is true, it does not provide a correct explanation for Assertion (A). Therefore, the correct answer is option 'C', where Assertion (A) is true, but Reason (R) is false.
Reason (R): The unitary elastic supply is equal to 1.
The correct answer is option 'C', which states that Assertion (A) is true, but Reason (R) is false.
Explanation:
To understand why the correct answer is option 'C', let's first define the terms involved in the question.
Elasticity of Supply: Elasticity of supply measures the responsiveness of the quantity supplied of a commodity to a change in its price. It indicates how sensitive the supply is to changes in price.
Unitary Elasticity: When the percentage change in quantity supplied is equal to the percentage change in price, the elasticity of supply is said to be unitary elastic. In other words, unitary elastic supply is equal to 1.
Now, let's evaluate the Assertion (A) and Reason (R) given in the question.
Assertion (A): Elasticity of supply of gold is unitary elastic.
This statement is incorrect. The elasticity of supply of gold is not necessarily unitary elastic. The elasticity of supply depends on various factors such as production capacity, availability of inputs, technology, and time period. Gold is a natural resource, and its supply is limited. The availability of gold depends on factors like mining activity, exploration, and extraction. If the supply of gold cannot be easily increased or decreased in response to price changes, it would have an inelastic supply. If the supply of gold is highly responsive to price changes, it would have an elastic supply. Therefore, the elasticity of supply of gold can vary and is not necessarily unitary elastic.
Reason (R): The unitary elastic supply is equal to 1.
This statement is correct. Unitary elastic supply refers to a situation where the percentage change in quantity supplied is equal to the percentage change in price. In such a case, the elasticity of supply is equal to 1. However, this reason does not explain why the elasticity of supply of gold is unitary elastic. As discussed earlier, the elasticity of supply of gold depends on various factors and can vary.
In conclusion, while the Reason (R) is true, it does not provide a correct explanation for Assertion (A). Therefore, the correct answer is option 'C', where Assertion (A) is true, but Reason (R) is false.
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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): Elasticity of supply of gold is unitary elastic.Reason (R): The unitary elastic supply is equal to 1.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 'C'. 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): Elasticity of supply of gold is unitary elastic.Reason (R): The unitary elastic supply is equal to 1.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 'C'. 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): Elasticity of supply of gold is unitary elastic.Reason (R): The unitary elastic supply is equal to 1.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 'C'. 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): Elasticity of supply of gold is unitary elastic.Reason (R): The unitary elastic supply is equal to 1.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 'C'. 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): Elasticity of supply of gold is unitary elastic.Reason (R): The unitary elastic supply is equal to 1.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 'C'. 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): Elasticity of supply of gold is unitary elastic.Reason (R): The unitary elastic supply is equal to 1.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 'C'. 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): Elasticity of supply of gold is unitary elastic.Reason (R): The unitary elastic supply is equal to 1.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 'C'. Can you explain this answer?.
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