Question

Given below are two statements :
Statement-I : When the demand curve shifts if the supply curve is steeper, then the price change is larger and the change in the amount bought and sold is smaller, as compared to the flatter supply curve.
Statement-II: When the supply curve shifts if the demand curve is steeper, then the price change is larger and the change in the amount bought and sold is smaller, as compared to the flatter demand curve.
In the light of the above statements, choose the correct answer from the options given below:

• A. Both Statement I and Statement II are true
• B. Both Statement I and Statement II are false
• C. Statement I is true but Statement II is false
• D. Statement I is false but Statement II is true

Answer 1

Answer: (A)

Both Statement I and Statement II are true

Answer 2

The correct answer is (A) : Both Statement I and Statement II are true.