Read the following statements - Assertion (A) and Reasoning (R):
Assertion: If there is excess demand in the market at price p1, the market price will decrease.
Reasoning: Some consumers who are either unable to obtain the commodity at all or obtain it in insufficient quantity will be willing to pay more than p1.

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

The correct answer is Option 4: Assertion (A) is false but Reasoning (R) is true.

Understanding Excess Demand:

• Excess demand occurs when the quantity demanded is greater than the quantity supplied at a given price (p1).
• In such a situation, consumers compete to buy the product, which drives the price up, not down.

Analyzing the Statements:

• Assertion (A): "If there is excess demand in the market at price p1, the market price will decrease."

  • ❌ False, because when there is excess demand, the price will increase, not decrease.

• Reasoning (R): "Some consumers who are either unable to obtain the commodity at all or obtain it in insufficient quantity will be willing to pay more than p1."

  • ✅ True, because when demand exceeds supply, some consumers are willing to pay a higher price to secure the good.