Question

Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R.
Assertion A : Walras' law states that the value of aggregate excess demand for all markets is zero.
Reason R : If (K-1) markets are in equilibrium, then the market for good K will automatically have demand equal to supply.
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 1

Answer: (A)

Both A and R are correct and R is the correct explanation of A

Answer 2

The correct option is(A): Both A and R are correct and R is the correct explanation of A