{"id":49952,"date":"2024-04-15T23:03:18","date_gmt":"2024-04-15T23:03:18","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=49952"},"modified":"2024-04-15T23:03:18","modified_gmt":"2024-04-15T23:03:18","slug":"assertion-a-the-demand-curve-has-negative-slope-showing-inverse-relationship-between-price-and-the-quantity-demanded-reason-r-it-applies-only-to-giffen-goods","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/assertion-a-the-demand-curve-has-negative-slope-showing-inverse-relationship-between-price-and-the-quantity-demanded-reason-r-it-applies-only-to-giffen-goods\/","title":{"rendered":"Assertion (A) The demand curve has negative slope showing inverse relationship between price and the quantity demanded. Reason (R) It applies only to giffen goods."},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a97deb2d9f95\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    Both (A) and (R) are true                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"true\">\r\n                    (A) is true, but (R) is false                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    (A) is false, but (R) is true                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    Both (A) and (R) are false                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>B. (A) is true, but (R) is false<\/strong><\/p>\n<p>The demand curve is a graphical representation of the relationship between the price of a good and the quantity demanded of that <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> good. It is typically downward-sloping, meaning that as the price of a good decreases, the quantity demanded of that good increases. This is because consumers are generally willing to buy more of a good when it is cheaper.<\/p>\n<p>However, there are some goods for which the demand curve may slope upward. These are known as Giffen goods. Giffen goods are goods for which the demand curve slopes upward because of the income effect. The income effect occurs when a change in the price of a good causes a change in the consumer&#8217;s purchasing power. For a Giffen good, a decrease in the price of the good will cause the consumer&#8217;s purchasing power to decrease, which will lead the consumer to buy less of the good.<\/p>\n<p>In conclusion, the demand curve typically slopes downward, but it may slope upward for Giffen goods. The reason for the upward-sloping demand curve for Giffen goods is the income effect.<\/p>\n<p>Here is a more detailed explanation of each option:<\/p>\n<ul>\n<li><strong>A. Both (A) and (R) are true.<\/strong> This is incorrect because (R) is false. The demand curve does not apply only to Giffen goods.<\/li>\n<li><strong>B. (A) is true, but (R) is false.<\/strong> This is the correct answer. The demand curve is typically downward-sloping, but it may slope upward for Giffen goods. The reason for the upward-sloping demand curve for Giffen goods is the income effect.<\/li>\n<li><strong>C. (A) is false, but (R) is true.<\/strong> This is incorrect because (A) is true. The demand curve is typically downward-sloping.<\/li>\n<li><strong>D. Both (A) and (R) are false.<\/strong> This is incorrect because (A) is true. The demand curve is typically downward-sloping.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Assertion (A) The demand curve has negative slope showing inverse relationship between price and the quantity demanded. 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