Read the following statements - Assertion (A) and Reason (R):

Assertion(A) In a capitalist economy, rich people may get more rich and poor people may get more poor.

Reason(R) In a capitalist economy, private players have profit maximisation as main objective and they own the major resources of the country.

From the given alternatives choose the correct one:

a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

One major shortcoming of a capitalist economy is that the production of goods are done on the basis of demand and considering the purchasing power of individual. Their objective of profit maximisation may lead the country into a situation where economy is growing, but at the cost of disparity. This is because there is no one to cater the needs of poor in the country.