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Statement and Assumption
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Directions : In each of the following questions a statement is given, followed by two conclusions. Give answer :

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

Assumptions :
I. The demand for seats of X-Airlines may remain unchanged even after the hike of fare.
II. Other airline companies may also hike the passenger fares.

Answer & Solution
Correct Answer: Option A
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.
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1 Comment
Rema Balu
Rema Balu 3 years ago
ever thought about law of demand?