The correct answer is A. Lower price in Mumbai and higher price in Delhi.
Dumping is the practice of selling goods at a price below cost in a foreign market. This can be done to gain market share, drive out competitors, or simply to get rid of excess inventory.
In the case of a cotton seller in India, dumping would refer to selling cotton at a lower price in Mumbai than in Delhi. This could be done to attract buyers in Mumbai, who may be more price-sensitive than buyers in Delhi. It could also be done to drive out competitors in Mumbai, who may not be able to match the lower prices.
Options B, C, and D are incorrect because they do not describe dumping. Option B describes selling cotton at a higher price in Mumbai than in Paris. Option C describes selling cotton at a lower price in Delhi than in Paris. Option D describes selling cotton at a higher price in Paris than in Mumbai.
It is important to note that dumping is not always illegal. In some cases, it may be considered a legitimate business practice. However, if it is done with the intent to harm competitors or to drive down prices artificially, it may be considered unfair trade practice and may be subject to government regulation.