Given below are the two statements, One is labeled as Assertion (A) and the other is labeled as Reason (R).
Assertion (A): Losch believed that price increase is the result of transport cost and by rotating the demand curve around the production point 'P'. the shape of the market area is seen to be circular.
Reason (R): Losch treated each function having a separate range, threshold, and hexagonal hinterland.
Select the correct answer from the option given below:
1
Both (A) and (R) are true and (R) is the correct explanation of (A)
2
Both (A) and (R) are true and (R) is not the correct explanation of (A)
3
(A) is true, but (R) is false
4
(A) is false, but (R) is true