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Discussion

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

The government's decision is clearly a measure to increase supply and control rates. So, both I and II are implicit, while III is not.

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