Read the following statements and choose the correct option.
Assertion (A): A restrictive trade practice imposes an unjustified cost on the consumer.
Reason (R): A restrictive trade practice manipulates price or affects the flow of supplies in the market relating to goods and services.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Both (A) and (R) are true and (R) is the correct explanation of (A).
Assertion (A): A restrictive trade practice imposes an unjustified cost on the consumer. — True. Under this practice the consumer is made to pay more than is fair, an unjustified cost.
Reason (R): A restrictive trade practice manipulates price or affects the flow of supplies in the market relating to goods and services. — True. The practice manipulates price or affects the flow of supplies of goods and services in the market.
Why R explains A?
The practice pushes prices up or cuts the supply of goods. When supply falls or prices are raised in this way, the consumer has to pay more than is fair. So the manipulation of price and supplies in R is what brings about the unjustified cost in A.
NCERT (2026-27 Edition): “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. |