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Statement and Assumption

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 X passenger car manufacturing company announced a sharp reduction in the prices of its luxury cars. Assumptions:
  1. There may be an increase in the sale of luxury cars of Company X.
  2. The other such car manufacturers may also reduce their prices.
  3. The competitor companies may not reduce their prices.

A Only I is implicit

B Only I and II are implicit

C None is implicit

D Only I and III are implicit

E None of these

ANS:E - None of these

Explanation: The reduction in prices is clearly a step to promote sales of the company. So, I is implicit. However, other companies may or may not follow the same pursuit. So, either II or III is implicit.



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