Assertion (A): Utility and Demand affect the price of a product. Reason (R): Utility provided by the product and the intensity of demand of the buyer set the upper limit of price.

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KollegeApply · Accepted Answer

Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A). Explanation: Utility and demand determine how much a buyer is willing to pay for a product, thereby affecting its price. This directly explains why the utility and intensity of demand set the upper price limit!

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