Statement: The availability of imported fruits has increased in the indigenous market and so the demand for indigenous fruits has been decreased. Conclusions: I. To help the indigenous producers of fruits, the Government should impose high import duty on these fruits, even if they are not of good quality. II. The fruit vendors should stop selling imported fruits. So that the demand for indigenous fruits would be increased.

Explanation

Option B is correct since statement I is incorrect because firstly it is asking to impose import duties despite the indigenous fruits being of poor quality. This would harm the customers who will have to buy the imported fruits at higher prices just to get an acceptable quality of fruit. Hence, this doesn't follow. Also, statement II doesn't help since, it firstly harms the customers who are forced to go for a lesser quality fruit due to inaccessibility. Secondly, this reduces competition in the market (which is mostly considered a negative). Thirdly it doesn't solve the issue of the indigenous fruits being of poor quality. Option A is correct since it states that both statements are correct, which is not the case. Option C is incorrect since it says that statement 1 is correct which is not the case. Option D is incorrect since it says that statement 2 is correct, which is not the case.