Assertion (A): Demand for luxuries is usually more elastic than demand for necessities.
Reason (R): Luxuries can be given up when prices rise; necessities cannot.

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.
Being able to go without a luxury (R) is exactly what makes its quantity respond strongly to price (A).

Concept: Luxuries and necessities
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsWhat decides elasticity

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Ten questions from Price Elasticity of Demand, at your own pace.

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Ten questions from Price Elasticity of Demand, at your own pace.

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Assertion (A): Demand for luxuries is usually more elastic than demand for necessities.Reason (R): Luxuries can be given up when prices rise; necessities cannot.

Explanation

Assertion (A): Demand for luxuries is usually more elastic than demand for necessities.
Reason (R): Luxuries can be given up when prices rise; necessities cannot.