Assertion:. Standard of living of the population determines the demand for better quality imported products.

Reasoning: Imported goods are expensive and with low standard of living only a few people can afford to buy costly imported goods.

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

The correct answer is option 1:Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Assertion:. Standard of living of the population determines the demand for better quality imported products. This statement is correct because people with a higher standard of living generally have greater purchasing power and demand better-quality imported goods.

Reasoning: Imported goods are expensive and with low standard of living only a few people can afford to buy costly imported goods. This statement is also correct because imported products are often costlier, making them affordable mainly to people with higher income levels.

Why Reason (R) correctly explains Assertion (A): The Reason explains that costly imported goods can mainly be purchased by people with higher living standards. Therefore, as the standard of living rises, the demand for imported quality products also increases. Hence, the Reason directly explains the Assertion.

NCERT: Size of population: Densely populated countries have large volume of internal trade but little external trade because most of the agricultural and industrial production is consumed in the local markets. Standard of living of the population determines the demand for better quality imported products because with low standard of living only a few people can afford to buy costly imported goods.