In the question given below there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options.

Assertion (A)- "Dual price policy" in China was an attempt to encourage the industrialisation.

Reason (R)-  Chinese government was of the view that the best way for development was to gradually build up a free market system by keeping the existing planned economy alongside. 

Both (A) and (R) are true and (R) is the correct explanation.

"Dual price policy" aimed at fixing the prices in two ways; farmers and industrial units were required to buy and sell fixed quantities of inputs and outputs on the basis of prices fixed by the government and the rest were purchased and sold at market prices. Gradually, with the passage of time the proportion of goods or inputs transacted in the market increased, due to increase in the production.