Statement: "Despite hike in tariff, power is still cheap in the city X." - Power Minister Assumptions: I. The cost of purchasing electricity or its generation is much more in city X than in the neighbouring states. II. Hike in tariff makes the power costly.
Correct Answer: if only assumption II is implicit.
Explanation:
Assumption I is not implicit because it rather contradicts the statement. But assumption II is implicit; that is why the word "despite" has been used in the statement.
