Question : Assertion: The concept of consumer surplus represents the difference between the price a consumer is willing to pay and the actual price they pay for a good.
Reason: Consumer surplus reflects the additional benefit or utility the consumer receives from purchasing a good.
Option 1: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Option 2: Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.
Option 3: The assertion is true, but the reason is false.
Option 4: The assertion is false, but the reason is true.
Correct Answer: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Solution : The correct option is (a) Option A Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
The assertion states that the concept of consumer surplus represents the difference between the price a consumer is willing to pay and the actual price they pay for a good, which is true.
The reason provided explains that consumer surplus reflects the additional benefit or utility the consumer receives from purchasing a good, which is also true. Consumer surplus represents the difference between the maximum price a consumer is willing to pay (their willingness to pay) and the actual price they pay. It measures the additional benefit or utility that the consumer gains from paying less than their maximum willingness to pay.
