Discussion
Statement: The government has decided to reduce its subsidy on LPG; however the subsidy on kerosene remains unchanged.
Assumptions:
1. Those people who buy LPG can afford to purchase LPG for a higher price.
2. Many people may stop buying LPG and instead use kerosene.
Answer: A
Clearly, the decision has been taken keeping in mind that the section of people using LPG can afford to pay a slightly higher price. The government does not want to affect the weakest sections who still use kerosene. So, only I is implicit, while II is not.
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