Question

(2) Assertion (A): Perfect competition prevails when the demand for the output of
Producer is perfectly elastic.
Reasoning (R): A single uniform price prevails under perfect competition which is
determined by the interaction of demand and supply.
Options: (I) (A) is True, but (R) is False
(2) (A) is False, but (R) is True
(3) Both (A) and (R) are True and (R) is the correct explanation of (A)
(4) Both (A) and (R) are True and (R) is not the correct explanation of (A)
(3) Assertion (A)
Sim​

Answer 1

Answer:

the interaction of demand and supply is not the correct explanation of assertion

Answer 2

The interaction of demand and supply is 3.

What is meant by supply and demand ?

• Supply and demand in economics refers to the link between the amount of a good that producers want to sell at various prices and the amount that purchasers want to buy.
• Even if they didn't buy tickets, some who are still interested in going to the game are willing to pay more. Demand and price will increase if a drought results in a very poor harvest.
• Making something appealing through extensive marketing aids producers in selling more goods. In general, it is believed that supply slopes upward; as the price rises, suppliers are willing to produce more.
• With everything else remaining the same, an increase in demand will result in a rise in the equilibrium price and an increase in supply. The equilibrium price will decrease due to a decline in demand.

To learn more about supply and demand refer to:

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