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Statement: The government has decided to reduce its subsidy on LPG; however the subsidy on kerosene remains unchanged. Assumptions: Those people who buy LPG can afford to purchase LPG for a higher price. Many people may stop buying LPG and instead use kerosene.

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, the decision has been taken keeping in mind that the section of people using LPG can afford to pay a slightly higher price. The government does not want to affect the weakest sections who still use kerosene. So, only I is implicit, while II is not.

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