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Statement: The X-Airlines has decided to increase the passenger fare by 15 percent with immediate effect. Assumptions: The demand for seats of X-Airlines may remain unchanged even after the hike of fare. Other airline companies may also hike the passenger fares.

Only assumption I is implicit
Only assumption II is implicit
Either I or II is implicit
Neither I nor II is implicit
Both I and II are implicit

Correct Answer: Only assumption I is implicit

Explanation:

Clearly, such decisions are taken only after making sure that it will not affect the company's business adversely. So, I is implicit. However, the impact of this increase on other airlines cannot be ascertained. So, II is not implicit.

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