From the following two statements of Assertion (A) and Reason (R) suggest the correct option.Assertion (A) The equilibrium price is decided at the level where the quantity demanded equals the quantity supplied.Reason (R) At this level excess of demand and excess of supply both remain zero.

Direction-The question have two statements.
One is labelled as Assertion (A) and the other as Reason (R). You have to examine both the statements carefully and decide whether Assertion (A) and Reason (R) separately are true and if so then reason is the correct explanation of the assertion. Mark these items on the answer sheet.
Assertion (A): Interest payable on working capital should be treated as an item of operating expenses.
Reason (R): Interest is the cost of capital used in the business.

A

Both A and R are correct and R is the correct explanation of A

B

Both A and R are correct and R is not the correct explanation of A

C

A is correct but R is wrong

D

A is wrong but R is correct

Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer.
Assertion (A) A price reduction leads to an increase in the quantity demanded of the commodity.
Reason (R) It results from price effects comprising income and substitutions effects which are always positive.

A

Both (A) and (R) are correct and (R) is the right explanation of (A)

B

Both (A) and (R) are correct, but (R) is not the right explanation of (A)

C

(A) is correct, but (R) is incorrect

D

Both (A) and (R) are incorrect

The question contains two statement. One is Assertion (A) and the other is Reason (R). You have to examine both the statements carefully and decide whether the Assertion (A) and Reason (R) are separately true? and If so, then Reason is the correct explanation of the Assertion. Mark these items in the balance sheet.
Assertion (A) Balance sheet does not reveal ownership of business.
Reason (R) Assets are just unrefined cost.

A

A and R both are correct and R is correct explanation of A

B

A and R both are correct and R is not correct explanation of A

C

A is correct but R is correct

D

A is wrong, but R is correct

Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer.
Assertion (A) There exists excess capacity of the production for the firms if these incur losses.
Reason (R) Their production level has to remain below their economic capacity level.

A

(A) is correct, but (R) is incorrect

B

(A) is incorrect, but (R) is correct

C

Both (A) and (R) are correct and (R) is the right explanation of (A)

D

Both (A) and (R) are correct, but (R) is not the right explanation of (A)

A particular price level, there are no forces tending to move it either up or down, it means
1. the firm is in equilibrium.
2. the price is in equilibrium.
3. the equilibrium price of the firm.
4. the equilibrium price and quantity of a firm.
Select the correct answer

A

Both 1 and 4

B

1, 2 and 4

C

Both 1 and 3

D

Only 4

Assertion (A): Distributive justice is based on the principle that there has to be equal distribution amongst the equals.
Reason (R): Reasonable classification is the essence of equality as justice cannot be achieved by promulgating uniform law for everyone.
1. Both A and R are correct and R is the correct reason for A.
2. Both A and R are correct but R is not the correct reason for A.
3. Both A and R are incorrect.
4. A is incorrect but R is correct.
Choose the correct option:

A

2

B

1

C

3

D

4

For the following two statements of Assertion (A) and Reason (R) suggest the correct answer.
Assertion (A) Low initial price regarded as the principal means for entering into mass market for some new products.
Reason (R) Firms generally enter into production of new products with excess capacity of the plant initially.

A

(A) is correct, but (R) is not correct

B

(A) is not correct, but (R) is correct

C

(A) and (R) both are correct and (R) is the right explanation of (A)

D

(A) and (R) both are correct but (R) is not the right explanation of (A)

For the following two statements of Assertion (A) and Reason (R) suggest the correct option.
Assertion (A) Low initial price regarded as the principal means for entering into mass market for some new products.
Reason (R) Firms generally enter into production of new products with excess capacity of the plant initially.

A

(A) is correct, but (R) is not correct

B

(A) is not correct, but (R) is correct

C

(A) and (R) both are correct and (R) is the right explanation of (A)

D

(A) and (R) both are correct, but (R) is not the right explanation of (A)

The price of a commodity is Rs. 20 and the quantity demanded at this price is 200 units. If the price falls to Rs. 16 and the quantity demanded increases to 280 units, calculate the price (arc) elasticity

A

1.6

B

1.5

C

1.9

D

1.3

From the following two statements of Assertion (A) and Reasoning (R), indicate the correct option.
Assertion (A) The quantity of a product demanded invariably changes inversely to changes in its price.
Reason (R) The price effect is the net result of the positive substitution effect and negative income effect.

A

Both (A) and (R) are correct

B

Both (A) is incorrect, but (R) is correct

C

Both (A) is correct, but (R) is incorrect

D

Both (A) and (R) are incorrect

From the following two statements of Assertion (A) and Reason (R) suggest the correct option.
Assertion (A) The equilibrium price is decided at the level where the quantity demanded equals the quantity supplied.
Reason (R) At this level excess of demand and excess of supply both remain zero.

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