Business Economics

1: Assertion (A). The excess price which a man in willing to pay rather than go with out the thing, over that he actually does pay is the consumer's surplus. Reason (R). The basic reason for consumer's surplus is law of diminishing marginal utility.
A.
Both (A) and (R) are true and (R) is the correct explanation of (A).
B.
Both (A) and (R) are true but (R) is not the correct explanation of (A).
C.

(A) is true but (R) is false.

D.

(A) is false but (R) is true.

 

Answer : B

Explanation :

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Option: A

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