Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.
Assertion (A): A progressive income tax is based on equimarginal sacrifice.
Reason (R): Higher the income, lower will be the marginal utility of money for the tax payer.
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.