Concept:
Ancient Egyptian civilization was known for luxury objects, decorative crafts, glassware, furniture, jewellery, and artistic objects.
Egyptian elites and royalty lived a lavish life, which encouraged the production of luxury items.
Step 1: Check Assertion (A).
The assertion says that Egyptians made beautiful glasswares and furniture inlaid with ivory and precious stones.
This statement is correct because Egyptian craftsmen were skilled in producing luxury and decorative objects.
Step 2: Check Reason (R).
The reason says that the lavish life of Egyptians required such luxury products.
This is also correct because elite lifestyle and royal patronage encouraged the making of luxury goods.
Step 3: Check the relationship.
The reason explains why such luxury products were made.
Because the upper class and royal society required decorated objects, craftsmen produced glassware, inlaid furniture, and precious artistic goods.
Step 4: Final conclusion.
Both Assertion and Reason are correct, and Reason correctly explains Assertion.
Hence, the correct answer is:
\[
\boxed{\text{(A)}}
\]