Question
Economics Question on Demand analysis
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R.
Assertion A : General equilibrium is attained in an economy when demand equals supply in all markets simultaneously.
Reason R : In a general equilibrium model, relative prices cannot be determined.
In the light of the above statements, choose the most appropriate answer from the options given below:
A
Both A and R are correct and R is the correct explanation of A
B
Both A and R are correct but R is NOT the correct explanation of A
C
A is correct but R is not correct
D
A is not correct but R is correct
Answer
A is correct but R is not correct
Explanation
Solution
The correct option is(C): A is correct but R is not correct