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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): When the price of the goods falls, the supply curve shifts to the right.
Reason (R): When price of the goods falls, the producers sell less as there is a positive relation between price and quantity supplied.
- 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...
New technology: When a firm discovers a new technology that allows it to produce at a lower cost, the supply curve will shift to the right as well. ... A technological improvement that reduces costs of production will shift supply to the right, causing a greater quantity to be produced at any given price.
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Direction: In the following questions, a statement of Assertion (A) i...
Assertion (A): When the price of the goods falls, the supply curve shifts to the right.
Reason (R): When price of the goods falls, the producers sell less as there is a positive relation between price and quantity supplied.
To understand the correct choice between the assertion and reason, let's analyze each statement individually:
Assertion (A): When the price of the goods falls, the supply curve shifts to the right.
The statement is true. According to the law of supply, when the price of goods decreases, producers are less willing to supply the goods at a lower price. Therefore, the quantity supplied decreases. This is represented by a movement along the supply curve, resulting in a leftward shift.
Reason (R): When price of the goods falls, the producers sell less as there is a positive relation between price and quantity supplied.
The statement is false. In reality, there is a positive relationship between price and quantity supplied, which means that as the price increases, producers are willing to supply more goods. Conversely, as the price decreases, producers are willing to supply fewer goods.
Explanation:
The correct choice is option 'C' - Assertion (A) is true, but Reason (R) is false.
The assertion correctly states that when the price of the goods falls, the supply curve shifts to the left. This is because producers are less willing to supply goods at lower prices. As a result, the quantity supplied decreases.
However, the reason incorrectly suggests that producers sell less when the price of goods falls. In reality, when prices decrease, producers sell more goods. This is because they can make a profit even at a lower price due to the positive relationship between price and quantity supplied.
To summarize, while the assertion is true and correctly explains the relationship between price and the supply curve, the reason is false as it incorrectly suggests that producers sell less when the price of goods falls.
Reason (R): When price of the goods falls, the producers sell less as there is a positive relation between price and quantity supplied.
To understand the correct choice between the assertion and reason, let's analyze each statement individually:
Assertion (A): When the price of the goods falls, the supply curve shifts to the right.
The statement is true. According to the law of supply, when the price of goods decreases, producers are less willing to supply the goods at a lower price. Therefore, the quantity supplied decreases. This is represented by a movement along the supply curve, resulting in a leftward shift.
Reason (R): When price of the goods falls, the producers sell less as there is a positive relation between price and quantity supplied.
The statement is false. In reality, there is a positive relationship between price and quantity supplied, which means that as the price increases, producers are willing to supply more goods. Conversely, as the price decreases, producers are willing to supply fewer goods.
Explanation:
The correct choice is option 'C' - Assertion (A) is true, but Reason (R) is false.
The assertion correctly states that when the price of the goods falls, the supply curve shifts to the left. This is because producers are less willing to supply goods at lower prices. As a result, the quantity supplied decreases.
However, the reason incorrectly suggests that producers sell less when the price of goods falls. In reality, when prices decrease, producers sell more goods. This is because they can make a profit even at a lower price due to the positive relationship between price and quantity supplied.
To summarize, while the assertion is true and correctly explains the relationship between price and the supply curve, the reason is false as it incorrectly suggests that producers sell less when the price of goods falls.
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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): When the price of the goods falls, the supply curve shifts to the right.Reason (R): When price of the goods falls, the producers sell less as there is a positive relation between price and quantity supplied.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): When the price of the goods falls, the supply curve shifts to the right.Reason (R): When price of the goods falls, the producers sell less as there is a positive relation between price and quantity supplied.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): When the price of the goods falls, the supply curve shifts to the right.Reason (R): When price of the goods falls, the producers sell less as there is a positive relation between price and quantity supplied.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): When the price of the goods falls, the supply curve shifts to the right.Reason (R): When price of the goods falls, the producers sell less as there is a positive relation between price and quantity supplied.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): When the price of the goods falls, the supply curve shifts to the right.Reason (R): When price of the goods falls, the producers sell less as there is a positive relation between price and quantity supplied.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): When the price of the goods falls, the supply curve shifts to the right.Reason (R): When price of the goods falls, the producers sell less as there is a positive relation between price and quantity supplied.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): When the price of the goods falls, the supply curve shifts to the right.Reason (R): When price of the goods falls, the producers sell less as there is a positive relation between price and quantity supplied.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?.
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): When the price of the goods falls, the supply curve shifts to the right.Reason (R): When price of the goods falls, the producers sell less as there is a positive relation between price and quantity supplied.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? in English & in Hindi are available as part of our courses for Commerce.
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