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
Answer: Option C
This Question Belongs to Management >> Managerial Economics
Related Questions on Managerial Economics
The emphasis of managerial economics is on
A. Bonus theory
B. Normative theory
C. System theory
D. Accounting theory
Which is not the subject of Managerial Economics?
A. Accounting Theory
B. Pricing Decision, Policies and Practices
C. Capital Management
D. Profit Management
Which is not covered under the scope of managerial economics?
A. Profit management
B. Accounting theory
C. Pricing policies
D. Production analysis
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