Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

Read the following statements -
Assertion (A) and Reasoning (R):
Assertion: Utility is subjective.
Reasoning: A person who has a stronger desire to have the commodity will derive greater utility from the commodity as compared to a person who has relatively less strong desire to have that same commodity.
From the given alternatives choose the correct one:

Options:

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

Both Assertion (A) and Reasoning (R) are true and Reasoning (R) is not the correct explanation of Assertion (A).

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

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

Correct Answer:

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

Explanation:

Say there are two persons, A and B. A is very thirsty and B is not thirsty. Both are given water to consume. A, who is thirsty, will derive more satisfaction or utility from drinking water as compared to person B, who is not thirsty, and is drinking the same commodity i.e. water in same amount.