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Statement and Assumption

Directions to SolveIn each question below is given a statement followed by two assumptions numbered I and II. You have to consider the statement and the following assumptions and decide which of the assumptions is implicit in the statement.Give answer
  • (A) If only assumption I is implicit
  • (B) If only assumption II is implicit
  • (C) If either I or II is implicit
  • (D) If neither I nor II is implicit
  • (E) If both I and II are implicit.
Q1:

Statement: Market trends are changing continuously and with increasing competitiveness, the consumer's demands with respect to the prices and quality are gradually increasing. Assumptions:
  1. The consumers did not care for the prices and quality earlier.
  2. Market competitiveness is not favourable for the consumers.

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:D - Neither I nor II is implicit

Explanation: The statement talks of 'increasing demands' of consumers. It does not imply that consumers were indifferent to price and quality earlier. So, I is not implicit. Besides, the statement mentions I that increasing competitiveness has made available to consumers a wide variety of options which has led them to comparing things and choosing the one which best suits their requirements and budget. They are thus getting better 'value for their money'. So, II is also not implicit.



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