Discussion
Statements: It has been decided by the Government to withdraw 33% of the subsidy on cooking gas from the beginning of next month. - A spokesman of the Government.
Conclusions:
1. People now no more desire or need such subsidy from Government as they can afford increased price of the cooking gas.
2. The price of the cooking gas will increase at least by 33% from the next month
Answer: D
The decision to withdraw subsidy has clearly been taken to compensate for the loss and not because people can now afford to pay more for cooking gas. So, I does not follow. Also, the statement talks of withdrawing 33% of the prevailing subsidy and not of reducing 33% of the actual price. So, II also does not follow.
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