Given below are two statements: One is labelled as Assertion (A) and the other is labelled as Reason (R):
Assertion (A): Substitution effect is usually much larger than the income effect.
Reason (R): Consumer usually spends only a small portion of her/his income on any one commodity.
In the light of the above Statements, choose the correct answer from the options given below:
1
Both (A) and (R) are true and (R) is the correct explanation of (A)
2
Both (A) and (R) are true but (R) is NOT the correct explanation of (A)
3
(A) is true but (R) is false
4
(A) is false but (R) is true