Logical Reasoning - Statement and Assumption - Discussion

In 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.

1. 

Statement: In order to reduce the gap between income and expenditure, the company has decided to increase the price of its product from next month.

Assumptions:

  1. The rate will remain more or less same after the increase.
  2. The expenditure will more or less remain the same in near future.
  3. The rival companies will also increase the price of the similar product.

[A]. Only I and II are implicit
[B]. Only II and III are implicit
[C]. Only III is implicit
[D]. All are implicit
[E]. None of these

Answer: Option E

Explanation:

Clearly, the company intends to reduce the gap between income and expenditure by increasing the price of its product i.e. by keeping the expenditure unaltered and increasing the income only. So, II is implicit while I is not. However, the rival companies may or may not follow the same pursuit. So, III is not implicit.

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