Logical Reasoning - Statement and Assumption - Discussion

Discussion Forum : Statement and Assumption - Section 6 (Q.No. 1)
Directions to Solve

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.

Only I and II are implicit
Only II and III are implicit
Only III is implicit
All are implicit
None of these
Answer: Option
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.
Discussion:
1 comments Page 1 of 1.

Aarif said:   2 years ago
If income is increasing the rate of product/service will increase too.

Option A is the right answer.
(1)

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