Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Assertion (A): All goods and services satisfy our needs and wants.

Reason (R): The satisfying power of the commodity is known as its utility.

• A. Both A and R are incorrect.
• B. A is correct, but R is incorrect.
• C. Both A and R are correct, but R is not the correct explanation for A.
• D. Both A and R are correct, and R is the correct explanation of A.

Answer 1

The correct option is D Both A and R are correct, and R is the correct explanation of A.

Utility is the satisfaction derived from the consumption of a commodity. All goods and services are consumed to satisfy human wants.