Read the following statements - Assertion (A) and Reason (R). Choose one
of the correct alternatives given below:
Assertion (A): Positive slope of the supply curve shows that the quantity of any
commodity that firms will be willing to produce and offer for sale,
rises with a rise in its price.
Reason (R): An increase in price, other things remaining unchanged, increases
the profit margin of the firms motivating them to produce and
supply more.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation of Assertion (A).
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
Dear Student,
The supply curve slopes upward since the price and quantity of commodity have positive relationship(i.e. if price increases, the supply of that commodity will also increase).
So, Option B is correct.
Both Assertion and Reason are true and Reason is not the correct explanation of Assertion.
Regards