Directions : In each of the following questions a statement is given, followed by two conclusions. Give answer : Statement : The government has decided to reduce its subsidy on LPG; however the subsidy on kerosene remains unchanged. Assumptions : I. Those people who buy LPG can afford to purchase LPG for a higher price. II. Many people may stop buying LPG and instead use kerosene.

The correct answer is: C. Either I or II is implicit

The government’s decision to reduce the subsidy on LPG implies that the government believes that those people who buy LPG can afford to purchase LPG for a higher price. However, it is also possible that the government is making this decision in order to encourage people to use kerosene instead of LPG. In this case, the government would be assuming that many people may stop buying LPG and instead use kerosene.

Therefore, either assumption I or assumption II is implicit in the statement.