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.

Give answer

  • (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
Answer: Option
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.

Prakhar said:   4 years ago
Say the company is facing extreme cash crunch and hence hikes the fare. Where's the certainty that the number of passengers won't decrease.

Am I right?
(2)

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

Thembisani said:   1 decade ago
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.
(1)

Rahul Kadha said:   6 years ago
The correct option is D. Nothing is mentioned about ticket demand.
(1)

Swish said:   4 years ago
D is correct. The company hikes its prices due to financial problems. Also, whether they get bookings or not mostly depends on the availability.
(1)

Chalam said:   1 decade ago
Can someone explain, how can we be sure that the demand for seats may remain unchanged after the hike of fare?

Saikat said:   1 decade ago
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
then how is the answer?

Pankaj said:   1 decade ago
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:   10 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.


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