Assertion (A): When the price of a normal commodity falls, the quantity demanded of that commodity increases, ceteris paribus. Reason (R): A fall in the price of a commodity increases the real income of consumers and makes relatively expensive substitute goods less attractive. Choose the correct answer from the options given below:

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Economics · Microeconomics

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Both (A) and (R) are true and (R) is the correct explanation of (A).

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Answer 1

Both (A) and (R) are true and (R) is the correct explanation of (A).

Answer 2

Both (A) and (R) are true but (R) is NOT the correct explanation of (A).

Answer 3

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Answer 4

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