Question : Assertion: Factors affecting price include costs, competition, and customer perception.
Reason: Price is determined solely by the seller's objectives and is independent of external factors.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true
Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Solution : The correct answer is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.
The assertion is true. Factors affecting price indeed include costs, competition, and customer perception. Costs influence the minimum price a seller can set, competition affects market dynamics and pricing strategies, and customer perception impacts the price customers are willing to pay.
The reason is false. Price is not determined solely by the seller's objectives; it is heavily influenced by external factors such as costs, competition, and customer perception. Sellers consider various factors in setting a price that aligns with market conditions and meets their business objectives, but it's not determined in isolation from external factors.
Question : Assertion: Price influences customer perception of a product's quality and value.
Reason: Price is solely determined by the cost of production and has no connection to customer preferences.
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