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5) Ed = 0 in case of ................ 2) (A) is False, but (R) is True
a) luxuries 3) Both (A) and (R) are True and (R) is the

b) normal goods correct explanation of (A)
c) necessities 4) Both (A) and (R) are True and (R) is not the
d) comforts correct explanation of (A)

Q. 2. Give economic terms : 2) Assertion (A) : A change in quantity demanded

1) Degree of responsiveness of quantity demanded of one commodity due to a change in the price
to change in income only. of other commodity is cross elasticity.
2) Degree of responsiveness of a change in quantity Reasoning (R) : Changes in consumers income
demanded of one commodity due to change in leads to a change in the quantity demanded.
the price of another commodity. Options : 1) (A) is True, but (R) is False

3) Degree of responsiveness of a change of quantity 2) (A) is False, but (R) is True
demanded of a good to a change in its price. 3) Both (A) and (R) are True and (R) is the
4) Elasticity resulting from infinite change in correct explanation of (A)
quantity demanded. 4) Both (A) and (R) are True and (R) is not the

5) Elasticity resulting from a proportionate change correct explanation of (A)
in quantity demanded due to a proportionate 3) Assertion (A) : Degree of price elasticity is less
change in price.
than one in case of relatively inelastic demand.
Q. 3. Complete the correlation : Reasoning (R) : Change in demand is less then
1) Perfectly elastic demand : Ed = ∞ :: : Ed the change in price.
= 0 Options : 1) (A) is True, but (R) is False

2) Rectangular hyperbola : : Steeper 2) (A) is False, but (R) is True
demand curve : Relatively inelastic demand. 3) Both (A) and (R) are True and (R) is the
3) Straight line demand curve : Linear demand correct explanation of (A)

curve :: : non linear demand curve. 4) Both (A) and (R) are True and (R) is not the
4) Pen and ink : :: Tea and Coffee: correct explanation of (A)
Substitutes. Q. 5. Distinguish between :
%Q
5) Ratio method : Ed = %P :: : Ed = 1) Relatively elastic and Relatively inelastic
Lower segment demand.
Upper segment
2) Perfectly elastic demand and Perfectly inelastic
Q. 4. Assertion and Reasoning type questions : demand.

1) Assertion (A) : Elasticity of demand explains
Q. 6. Answer the following questions :
that one variable is influenced by another
variable. 1) Explain the factors influencing elasticity of
demand.
Reasoning (R) : The concept of elasticity
of demand indicates the effect of price and 2) Explain the total outlay method of measuring
changes in other factors on demand. elasticity of demand?

Options : 1) (A) is True, but (R) is False 3) Explain importance of elasticity of demand.

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