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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: The company has decided to increase the price of all its products to tackle the precarious financial position. Assumptions:
  1. The company may be able to wipe out the entire losses incurred earlier by this decision.
  2. The buyers may continue to buy its products even after the increase.
  3. The company has adequate resources to continue production for few more months.

A Only I and III are implicit

B Only II is implicit

C Only II and III are implicit

D None is implicit

E None of these

ANS:A - Only I and III are implicit

Explanation: It is mentioned that the company has taken the decision to make up for the financial deficit. So, I is implicit. The response of the buyers to the increased prices cannot be deduced from the statement. So, II is not implicit. Since the company seeks to improve its financial position by increasing the prices of its products, so III is also implicit.