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Statement and Assumption - Verbal and Reasoning

Directions to SolveIn each question below is given a statement followed by three assumptions numbered I, II and III. You have to consider the statement and the following assumptions, decide which of the assumptions is implicit in the statement and choose your answer accordingly.
Q1:

Statement: In view of the recent spurt in sugar prices in the open market, the government has asked the dealers to release a vast quantity of imported sugar in the open market. Assumptions:
  1. The dealers will follow the government directive.
  2. The sugar prices will come down.
  3. The price of indigenous sugar will remain unchanged.

A Only I and II are implicit

B Only II and III are implicit

C Only I and III are implicit

D None is implicit

E All are implicit

ANS:A - Only I and II are implicit

Explanation: The government's decision is clearly a measure to increase supply and control rates. So, both I and II are implicit, while III is not.