Question

Assertion (A) – Substitute goods have positive elasticity.

Reasoning (R) – Increase in price of tea leads to increase in demand of coffee.

(i) (A) is true but (R) is false. 

(ii) (A) is false but (R) is true. 

(iii) Both (A) and (R) are true and (R) is the correct explanation of (A). 

(iv) Both (A) and (R) are true and (R) is not the correct explanation of (A).

Answer 1

(iii) Both (A) and (R) are true and (R) is the correct explanation of (A).