Assertion and Reasoning type of question:
Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity
Reasoning (R): Changes in consumer income leads to a change in the quantity demanded.
(A) is true, but (R) is false
(A) is false, but (R) is true
Both (A) and (R) are true and (R) is the correct explanation of (A)
Both (A) and (R) are true and (R) is not the correct explanation of (A)
Both (A) and (R) are true and (R) is not the correct explanation of (A)
Concept: Elasticity of Demand
Is there an error in this question or solution?
Which is the term used to define when quantity demanded of a commodity changes due to a change in its price keeping other factors constant?
When quantity demanded of a commodity changes due to a change in its price, keeping other factors constant, it is known as change in quantity demanded. It is graphically expressed as a movement along the same demand curve.
When change in price of one commodity affects the demand for other in the same direction the commodities are?
If an increase in the price of one commodity leads to an increase in demand for a second commodity, then the two commodities are complements. An individual's demand curve is formulated under the assumption that price is held constant and all other determinants of demand are allowed to vary.
When quantity demanded changes due to change in factors other than own price is known as?
Increase in Demand refers to a rise in the demand of a commodity caused due to any factor other than the own price of the commodity. In this case, demand rises at the same price or demand remains same even at higher price.