To determine the correct answer, we need to evaluate both the assertion (A) and the reason (R) regarding inferior goods.

1. Understanding Inferior Goods: An inferior good is a type of good for which demand decreases as the income of the consumer increases. In other words, people buy less of an inferior good as they become wealthier because they can afford better substitutes.
2. Assertion (A): "Inferior good exhibits an upward-sloping demand curve, where an increase in price leads to an increase in the quantity demanded."
   • The statement in (A) is generally false. For most goods, including inferior goods, the demand curve typically slopes downward, meaning that an increase in price leads to a decrease in the quantity demanded. This is contrary to the assertion.
3. Reason (R): "For inferior goods, the income effect of a price increase is weaker than the substitution effect, leading consumers to purchase more of the good as price increases."
   • This statement (R) touches on the concept of the Giffen good, a special type of inferior good where the income effect dominates the substitution effect in such a way that an increase in price leads to an increase in quantity demanded. However, for regular inferior goods, the substitution effect typically outweighs the income effect, leading to a decrease in demand as price increases, aligning with the general law of demand.
   • Thus, while the regular case does not apply to all situations, the reason suggested here is theoretically possible within very specific circumstances, like Giffen goods.
4. Evaluation of Options:
   • Since option (A) describes an upward-sloping demand scenario, which is generally not true for regular inferior goods, it is categorically false.
   • Option (R) is true in very specific cases (such as Giffen goods, which are a special type of inferior goods), but not generally applicable to all inferior goods.
5. Conclusion:
   • After analyzing, the best fit answer is "
     (A) is false, but (R) is true
     ".