Read both the statements and decide which of the following answer choice correctly depicts the relationship between these two statements. Statements: I. The Laptop manufacturing companies have recently increased the prices of Laptops. II. The Government recently increased the duty on Laptops.
Analyzing Statement I: Laptop Price Increase
Statement I points out that laptop manufacturing companies have recently increased the prices of laptops. This is a common occurrence in markets where costs might rise or demand is high.
Analyzing Statement II: Government Duty Increase
Statement II states that the Government recently increased the duty on Laptops. A 'duty' in this context usually refers to a tax imposed on imported goods or sometimes on domestically produced goods.
Determining the Relationship Between Statements
To understand the connection, consider how government policies affect business costs:
- An increase in government duty (like an import tax or excise tax) directly increases the cost for companies that manufacture or import laptops.
- When the costs associated with producing or selling a product go up, companies often pass these increased costs onto consumers to maintain their profit margins.
- Therefore, an increase in government duty on laptops (Statement II) is a direct factor that would likely lead to an increase in laptop prices (Statement I).
This establishes a cause-and-effect relationship where Statement II is the cause, and Statement I is the effect.
Evaluating the Options
Let's look at the given options:
- Option 1 suggests both are effects of independent causes. This is unlikely, as the two events are clearly linked economically.
- Option 2 suggests Statement I (price increase) is the cause of Statement II (duty increase). This is illogical; companies raising prices doesn't typically cause the government to impose or increase duties.
- Option 3 suggests Statement II (duty increase) is the cause of Statement I (price increase). This aligns perfectly with economic principles where increased taxes lead to increased prices.
- Option 4 suggests both are independent causes. As discussed, they are likely dependent.
Based on this analysis, the most accurate conclusion is that the government's decision to increase duty on laptops is the reason behind the companies raising their prices.
Important Questions from Cause and Effect
In this question, two statements I and II have been given. These statements may be independent causes or effects of independent causes or a common cause. One of the statements may be the effect of the other statement. Read both statements and select the correct answer.
I. Since the past three years, State M has reported a sharp and substantial decline in the state’s agricultural produce.
II. In the last five years, there has been an increase in the overall average Rainfall by 6% in State M bringing respite to the farmers.
In this question, two statements I and II have been given. These statements may be independent causes or effects of independent causes or a common cause. One of the statements maybe the effect of the other statement. Read both statements and select the correct answer.
I. This year College X reduced the cut-off marks to 50 from 60 for the entrance exam.
II. In the last two years, the Students Union in College X has been actively negotiating with the college administration regarding the Quality of food and Health and Hygiene standards at the College Canteen.
In this question, two statements I and II have been given. These statements may be independent causes or effects of independent causes or a common cause. One of the statements may be the effect of the other statement. Read both statements and select the correct answer.
I. Over the last two years 22% of the Company P’s manpower was laid off.
II. Over the past two years Company P has sold off many of their major assets.
Directions: Given below is a pair of statements (i) and (ii). Assuming that the information given in both (i) and (ii) is true, decide the nature of their relationship. To determine the answer, do not assume anything beyond the given information.
Statement (i): High level of air pollution in the city
Statement (ii): Increase in respiratory and health-related problems in the population
Below a question is given with two statements (I) and (II). These statements may be either independent causes or may be effects of independent causes or a common cause. One of these statements may be the effect of the other statement. Read both the statements and decide which of the following answer choice correctly depicts the relationship between these two statements.
I. The staff of the factory called off the strike they were holding protesting against the low wages.
II. The staff of the factory went on a strike, anticipating a threat to their jobs.
