Given below are two statements: One is labelled as Assertion (A) and the other is labelled as Reason (R): Assertion (A): Substitution effect is usually much larger than the income effect for a price change of a single ordinary commodity. Reason (R): A consumer usually spends only a small portion of her/his income on any one single commodity. In the light of the above statements, choose the correct answer from the options given below:

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Economics · Business Economics

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Correct answer

Both (A) and (R) are true and (R) is the correct explanation of (A)

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Answer 1

Both (A) and (R) are true and (R) is the correct explanation of (A)

Answer 2

Both (A) and (R) are true but (R) is NOT the correct explanation of (A)

Answer 3

(A) is true but (R) is false

Answer 4

(A) is false but (R) is true

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