Cause–Effect Analysis:\nCause — Cement manufacturers increased cement prices by ~15% with immediate effect.\nWhich of the following is/are possible effect(s)?\n(1) Government orders reduction of the hike to 5%.\n(2) Prices of residential and commercial real estate trend upward.\n(3) Construction companies stop all ongoing projects immediately.

Introduction / Context:
An input-cost shock (cement +15%) can transmit to downstream sectors. We must select which effects are realistic and directly linked, avoiding speculative policy actions or extreme reactions.

Given Data / Assumptions:

• Immediate cement price hike of ~15% by manufacturers.
• Candidate effects: (1) Govt. rollback to 5%; (2) Real estate price rise; (3) Construction stoppage.

Concept / Approach:
Identify effects with high likelihood and direct pass-through. Real estate costs include cement as a major input, so (2) is a natural consequence. Government rollback (1) is uncertain and contingent on political economy. Total stoppage (3) is drastic and unlikely across the board.

Step-by-Step Solution:
1) (2) Upstream cost increases typically raise output prices in construction/real estate—plausible and direct.2) (1) A mandated rollback is possible but speculative; the stem does not suggest such intervention.3) (3) Complete stoppage of ongoing projects is extreme; most firms adjust budgets, renegotiate, or phase work rather than halt universally.

Verification / Alternative check:
Sectoral pricing behavior historically shows cost pass-through rather than systemic halts.

Why Other Options Are Wrong:
(b) and (c) pick unlikely single effects; (d) pairs a plausible with an extreme; “None” is incorrect because (2) is credible.

Common Pitfalls:
Overestimating immediate government intervention; assuming uniform project stoppages.

Final Answer:
Only effect (2) is likely.