Directions : In each of the following questions a statement is given, followed by three conclusions. Give answer :

Statement : The X passenger car manufacturing company announced a sharp reduction in the prices of its luxury cars.

Assumptions :
I. There may be an increase in the sale of luxury cars of Company X.
II. The other such car manufacturers may also reduce their prices.
III. The competitor companies may not reduce their prices.
  • 1Only I is implicit
  • 2Only I and II are implicit
  • 3None is implicit
  • 4None of these
Answer:- 1
Explanation:-

Solution:
The reduction in prices is clearly a step to promote sales of the company. So, I is implicit. However, other companies may or may not follow the same pursuit. So, either II or III is implicit.

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