Cause–Effect reasoning: Decide whether the tax policy change explains the subsequent price revision. Statement I: Car manufacturers recently increased prices of mid-sized cars. Statement II: The Government recently increased the duty on mid-sized cars. Choose the correct option describing the relationship.

Difficulty: Easy

• Statement I is the cause and Statement II is its effect
• Statement II is the cause and Statement I is its effect
• Both are independent causes
• Both are effects of independent causes
• Both are effects of a common cause