Assertion (A): Equilibrium price is determined by demand alone.
Reason (R): Equilibrium is where the demand and supply curves intersect.

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 D

Correct answer: D

A is false: both demand and supply decide the price, like the two blades of a pair of scissors.
R is true.

Concept: Both blades of the scissors
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsEquilibrium price and quantity

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Ten questions from Market Equilibrium & Price Controls, at your own pace.

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Ten questions from Market Equilibrium & Price Controls, at your own pace.

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Assertion (A): Equilibrium price is determined by demand alone.Reason (R): Equilibrium is where the demand and supply curves intersect.

Explanation

Assertion (A): Equilibrium price is determined by demand alone.
Reason (R): Equilibrium is where the demand and supply curves intersect.