Question

Assertion (A): A farmer sells wheat directly to the consumer.

Reason (R): When a producer sells directly to the consumers, it is called retail trade.

Which of the following is correct?

• A. Both A and R are true, and R is the correct explanation of A.
• B. Both A and R are true, but R is not the correct explanation of A.
• C. A is true, but R is false.
  
• D. A is false, but R is true.

Answer 1

The correct option is A Both A and R are true, and R is the correct explanation of A.

When a retail trader buys goods from a wholesale trader and sells it directly to consumers, or when a producer or a wholesale trader sells directly to the consumers, it is known as retail trade. Here, the farmer producing wheat is selling it directly to the consumer. So, it is a retail trade.