# Logical Reasoning - Statement and Assumption - Discussion

Discussion Forum : Statement and Assumption - Section 1 (Q.No. 48)
Directions to Solve

In 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.

• (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.

48.

Statement: The X-Airlines has decided to increase the passenger fare by 15 percent with immediate effect.

Assumptions:

1. The demand for seats of X-Airlines may remain unchanged even after the hike of fare.
2. Other airline companies may also hike the passenger fares.

Only assumption I is implicit
Only assumption II is implicit
Either I or II is implicit
Neither I nor II is implicit
Both I and II are implicit
Explanation:
Clearly, such decisions are taken only after making sure that it will not affect the company's business adversely. So, I is implicit. However, the impact of this increase on other airlines cannot be ascertained. So, II is not implicit.
Discussion:
13 comments Page 1 of 2.

Can someone explain, how can we be sure that the demand for seats may remain unchanged after the hike of fare?

People are using X-airline more in comparison to the rest so X-airlines might assume that even after increase in fare people will use it.

Ganesh kumbhar said:   1 decade ago
The statement and assumption 1 are not concerned and 2 assumption is about other airlines companies which is not considerable

The X airline will not increase the fair unless, it may assure that the demand of seats remain unchanged.
(1)

This is not correct, the market is always about demand and supply and price, the assumption here is that X airlines must be doing very well to even consider increasing the price of flights, now in a market it does not matter how much research you make, if you change something between the market forces (demand, supply and price), it will affect the others and cause a change, please change your statement it is wrong. No company can make a change on one of these 3 forces and expect things to remain constant.

I believe that option d is correct because id airline increase fare, there are no any guarantee that passenger will remain or other airlines may increase fare.

Trishul said:   9 years ago
Airline (or any business) hike prices with expectation that sales revenue or profit doesn't decrease. Sales may go down but total revenue may not.

Sahil said:   8 years ago
Totally agree with you @Thembisani.

It only suggests that airlines will make profits even after its demand dips due to the increase in fare.

Subhram said:   7 years ago
Option D is correct. As nothing is mentioned about the demand for seats in the paragraph and more over its not possible to predict its unchanged demand as it highly depends on fare and service provided by the other airlines.

Rahul Kadha said:   5 years ago
The correct option is D. Nothing is mentioned about ticket demand.
(1)