Question

Read the following statements - Assertion (A) and Reason (R). Choose one of the correct
alternatives given below:
Assertion (A): The bundles of budget set lie either on or below the budget line.
Reason (R): Budget set include all the possible bundles which cost less than or equal to
consumer's money income. Bundles costing less than income lie below the budget line
and bundles costing equal to income lie on the budget line.
Alternatives:
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.​

Answer 1

Answer:

C is correct dear.....................

Explanation:

✌️✌️✌️✌️✌️✌️✌️✌️

Answer 2

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

• A Budget Line is the borderline that contains the Budget Set.
• A Budget Set is the total combination of different sets of two goods that helps draw the Budget Line.

• So the Reason (R) states that a Budget Set includes two kinds of goods that put together should ideally be lower than the consumer's income.
• However, before and at Breakeven Income Level, there's dissaving and zero savings, respectively.
• Hence, at these levels, Budget Set should be on the Budget Line. Therefore,  R is the correct explanation of A.  

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