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Statements: The car manufacturing companies have recently increased the prices of mid-sized cars. The Government recently increased the duty on mid-sized cars.

Statement I is the cause and statement II is its effect.
Statement II is the cause and statement I is its effect.
Both the statements I and II are independent causes.
Both the statements I and II are effects of independent causes.
Both the statements I and II are effects of some common cause.

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

Explanation:

Since the government has recently increased the duty on mid-sized cars, therefore, the car manufacturing companies have recently increased the prices of mid-sized cars.

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