Assertion (A): Elasticity of demand explains that one variable is influenced by another variable. Reasoning (R): The concept of elasticity of demand indicates the effect of price and changes in other factors on demand.

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Both (A) and (R) are true and (R) is the correct explanation of (A). Explanation: The assertion is true because the elasticity of demand measures how an independent variable (such as price or income) affects a dependent variable (amount demanded). The reasoning appropriately explains this by stating that the idea quantifies the exact responsiveness or effect that price fluctuations and other economic factors have on consumer demand, hence directly verifying the assumption.

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