Logical Deduction — Statements & Conclusions Statement: "The Government will withdraw 33% of the subsidy on cooking gas from the beginning of next month," said the spokesman. Which conclusions logically follow?
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AOnly conclusion I follows
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BOnly conclusion II follows
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CEither I or II follows
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DNeither I nor II follows
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EBoth I and II follow
Answer
Correct Answer: Neither I nor II follows
Explanation
Introduction / Context:The problem examines how to move from a fiscal announcement to logically valid conclusions. A reduction of 33% of the subsidy is a policy detail; we must not over-interpret it into claims about public affordability or exact retail price changes.
Given Data / Assumptions:
- A policy: withdraw 33% of the subsidy on cooking gas starting next month.
- Conclusion I: People no longer desire/need subsidy and can afford a higher price.
- Conclusion II: The consumer price of cooking gas will increase by at least 33%.
Concept / Approach:Distinguish "subsidy percent" from "price percent." Removing a fraction of the subsidy changes the consumer's out-of-pocket price by the removed amount, which need not equal 33% of the total price. Also, government motives for subsidy reform do not prove consumers’ ability or desire.
Step-by-Step Solution:Conclusion I fails: Policy change could be driven by budget constraints or efficiency goals, not necessarily because people can afford more.Conclusion II fails: If the subsidy is S and price before subsidy is P, consumer pays (P − S). Withdrawing 33% of S raises the price by 0.33 * S, which is not necessarily 33% of P or of the consumer's previous payment. Thus the exact "≥33%" retail increase is not compelled.
Verification / Alternative check:Consider numerical example: P = 100, S = 30, consumer pays 70. Reduce subsidy by 33% of S = 10; consumer pays 80 next month. The increase is 10/70 ≈ 14.3%, not 33%.
Why Other Options Are Wrong:
- I or II individually: neither is logically forced by the statement.
- Both: far too strong.
Common Pitfalls:Confusing percent-of-subsidy with percent-of-price; reading government intent into consumer capacity.
Final Answer:Neither I nor II follows