| A. | assumption of the rationality of the consumer’s behaviour. |
| B. | possibility of the derivation of the consumer’s demand. |
| C. | bifurcation of price effects into income and substitution effects. |
| D. | consideration of the available limited resources for satisfying consumer’s demand. |
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Option: B Explanation : Click on Discuss to view users comments. |
For the following statements of Assertion (A) and Reasoning (R) indicate the correct code :
Assertion (A) : Price reduction normally leads to an increase in the demand for a commodity.
Reason (R) : Price reduction leads to the entry of new buyers of the commodity in the market
| A. | (A) is correct but (R) is not correct. |
| B. | (A) is not correct but (R) is correct. |
| C. | Both (A) and (R) are correct and (R) offers full explanation of (A). |
| D. | Both (A) and (R) are correct but (R) does not offer full explanation of (A). |
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Option: B Explanation : Click on Discuss to view users comments. |
| A. | I II III |
| B. | II III IV |
| C. | I III IV |
| D. | I II IV |
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Option: C Explanation : Click on Discuss to view users comments. |
Monopoly is not considered desirable from the point of view of the society mainly because the monopolist endeavours to
| A. |
earn net revenue on sale of all goods including those involving no cost of production.
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| B. | earn net revenue on sale of goods in short run as well as long run. |
| C. | charge different prices for the same product from the different categories of buyers. |
| D. |
produce below economic capacity level when he exhibits satisfaction with normal profit only.
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Option: B Explanation : Click on Discuss to view users comments. |
