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Statement: In view of the recent spurt in sugar prices in the open market, the government has asked the dealers to release a vast quantity of imported sugar in the open market.

Assumptions:

1. The dealers will follow the government directive.

2. The sugar prices will come down.

3. The price of indigenous sugar will remain unchanged.

  • A.Only I and II are implicit
  • B.Only II and III are implicit
  • C.Only I and III are implicit
  • D.None is implicit
  • E.All are implicit

Answer: A

Correct answer: Only I and II are implicit

The directive presupposes that the dealers will comply - assumption I - and that releasing the imported stock will bring prices down, which is assumption II and the whole object of the measure. Only I and II are implicit.

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