Socioeconomic inference: High-income locality composition vs. higher supermarket sales — establish the proper cause–effect classification with justification.

Verbal Reasoning Cause and Effect Difficulty: Easy
Choose an option
  • A
    Statement I is the cause and statement II is its effect
  • B
    Statement II is the cause and statement I is its effect
  • C
    Both the statements I and II are independent causes
  • D
    Both the statements I and II are effects of independent causes
  • E
    Both the statements I and II are effects of some common cause

Answer

Correct Answer: Statement I is the cause and statement II is its effect

Explanation

Given data

  • I: Most citizens in the locality belong to higher income groups.
  • II: The local supermarket's sales are much higher than those in other localities.

Concept/Approach

  • Higher disposable income typically increases retail spending, boosting sales.

Step-by-Step reasoning1) Higher-income composition (I) → greater purchasing power.2) Greater purchasing power → higher supermarket sales (II).

Verification/Alternative

  • Reverse causality (II → I) is implausible: high sales do not convert residents into a higher-income group.

Common pitfalls

  • Attributing sales differences solely to store quality without considering customer income mix.

Final AnswerStatement I is the cause and statement II is its effect.

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