Question

In each question below is given a statement followed by two assumptions numbered I and II. An assumption is something supposed or taken for granted. You have to consider the statement and the following assumptions and decide which which of the assumption(s) is/are implicit in the statement

Statement
The X- airlines has decided to increase the passenger fare by $15\%$ with immediate effect.

Assumptions
I. The demand for seats of X-airlines may remain unchanged even after the hike of the fare.
II. Other airline companies may also hike the passenger fares.

• A. If only Assumption I is implicit
• B. If only Assumption II is implicit
• C. If either Assumption I or II is implicit
• D. If neither Assumption I nor II is implicit
• E. If both Assumptions I and II are implicit

Answer 1

The correct option is A If only Assumption I is implicit

The ‘X’- airlines has decideed to increase the fares assuming that it will not affect its business adversely. Therefore, Assumption I is implicit in the statement. Other airlines may or may not follow this pursuit.