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Statement and Assumption - Verbal and Reasoning

Q1:

Statement: The cost of living has gone up in India. Assumptions:
  1. The price of essential commodities has gone up in recent times.
  2. Many luxury goods are available in plenty in the country.

A Only assumption I is implicit

B Only assumption II is implicit

C Either I or II is implicit

D Neither I nor II is implicit

E Both I and II are implicit

ANS:E - Both I and II are implicit

Explanation: The cost of living is directly associated with the prices of essential commodities. So, I is implicit. II denotes an essential consequence of rise in cost of living. So, II is also implicit.