Economics - Study Mode

[#281] For the following statement of Assertion (A) and Reasoning (R) select the correct answer: Assertion (A): Price reduction normally leads to an increase in the demand for a commodity. Reason (R): Price reduction leads to the entry of new buyers of the commodity in the market.
Correct Answer

(D) Both (A) and (R) are correct but (R) does not offer a full explanation of (A)

[#282] Which of the following is not known as the 'law of equi-marginal utility'?
Correct Answer

(B) Gossen's first law

[#283] If ∆I = Rs. 100 and marginal production cost Rs. 9 then National income will increase
Correct Answer

(B) Rs. 900

[#284] When there is a very small change in the price of a commodity and there is a great change in the demand, when the demand for such will be
Correct Answer

(D) Highly elastic

[#285] The method of finding NNP is-
Correct Answer

(A) NNP = GNP - Depreciation