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Assertion: the average price a consumer pays is the right figure to use when deciding whether to install a saving measure. Reason: it is the price shown on the bill.

  • A.the assertion is true but the reason given for it is false
  • B.the assertion is false although the reason offered is a true statement in itself
  • C.both the assertion and the reason are true and the reason explains the assertion
  • D.both the assertion and the reason are true but the reason does not explain the assertion

Answer: B

The bill does show an average, but a unit saved is a unit removed from the highest slab or the peak register, so it is worth the marginal price. Using the average understates the saving on an inclining tariff and overstates it on a telescopic one.

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