Read the following statements and choose the correct option.
Assertion (A): Dealers who hold back the supply of cement in a town in order to raise its price are engaged in a restrictive trade practice.
Reason (R): Consumers need protection against malpractices of sellers such as hoarding and black-marketing.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Both (A) and (R) are true but (R) is not the correct explanation of (A).
Assertion (A): Dealers who hold back the supply of cement in a town in order to raise its price are engaged in a restrictive trade practice. — True. Holding back supply affects the flow of supplies, and buyers pay an unjustified cost for cement.
Reason (R): Consumers need protection against malpractices of sellers such as hoarding and black-marketing. — True. Hoarding and black-marketing are named among the malpractices of sellers that exploit consumers.
Why R does not explain A?
R only says that consumers need protection against such malpractices. It does not say what makes holding back supply a restrictive trade practice. The correct reason for A is the meaning of the term: a restrictive trade practice manipulates price or affects the flow of supplies so that an unjustified cost is imposed on the consumer.
NCERT (2026-27 Edition): “(iii) Widespread Exploitation of Consumers: Consumers might be exploited by unscrupulous, exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black-marketing, etc. Consumers need protection against such malpractices of the sellers.” “Terms & Definitions … 5. Restrictive trade practice: A trade practice which manipulates price or affect the flow of supplies in the market relating to goods and services in such a manner that an unjustified cost is imposed on the consumer.” |