Discussion
Statement: The X passenger car manufacturing company announced a sharp reduction in the prices of its luxury cars.
Assumptions:
1. There may be an increase in the sale of luxury cars of Company X.
2. The other such car manufacturers may also reduce their prices.
3. The competitor companies may not reduce their prices
Answer: E
Correct answer: None of these
A cut in prices is announced in the hope of selling more, but nothing in the announcement requires that rivals will follow suit or that any particular consequence will follow - so the combination offered does not match what the statement takes for granted. None of these.
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