Cause–Effect reasoning: Identify the relationship between Statement I and Statement II. S1: Domestic prices of petrol and diesel have remained unchanged for the past few months. S2: International crude oil prices have risen substantially in the last few months. Choose the correct cause–effect option.
Verbal Reasoning
Cause and Effect
Difficulty: Medium
Choose an option
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AStatement I is the cause and Statement II is its effect.
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BStatement II is the cause and Statement I is its effect.
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CBoth statements I and II are independent causes.
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DBoth statements I and II are effects of independent causes.
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EBoth statements I and II are effects of a common cause.
Answer
Correct Answer: Both statements I and II are effects of independent causes.
Explanation
Given data
- S1: Retail domestic fuel prices are unchanged.
- S2: Global crude prices have increased sharply.
Concept / Approach Domestic pump prices are often administered or buffered (taxes/subsidies). A rise in global crude would pressure retail prices, but S1 shows they were held steady—likely due to domestic policy decisions. Thus each statement reflects different drivers.
Reasoning S2 effect driver: Global supply–demand/geopolitics. S1 effect driver: Domestic pricing/tax policy or subsidy smoothing. Hence they do not cause one another; they are effects of independent causes.
Final Answer Both statements I and II are effects of independent causes.