Discussion
Assertion (A) : Consumer Surplus is the difference between the potential price and actual price.
Reason (R) : There exists an inverse relationship between the price and consumer surplus.
Codes :
Answer: B
Both statements are true, but the reason does not explain the assertion. Consumer surplus is indeed the gap between the price a consumer is willing to pay (the potential price) and the price actually paid, which is the assertion.
The reason, that price and consumer surplus move in opposite directions, is also true, but it states a consequence and not the meaning of the surplus. So the second code is right. The first fails because R is not the definition, and the other two wrongly call one statement false.
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development