Assertion (A): An expected fall in the price of a good next month lowers its demand today.
Reason (R): Buyers postpone purchases they expect to get cheaper later.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Both are true, and R explains A.

Concept: Expected price fall
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsDeterminants of demand

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Assertion (A): An expected fall in the price of a good next month lowers its demand today.Reason (R): Buyers postpone purchases they expect to get cheaper later.

Explanation

Assertion (A): An expected fall in the price of a good next month lowers its demand today.
Reason (R): Buyers postpone purchases they expect to get cheaper later.