l.The car manufacturing companies have recently increased the prices of mid-sized cars. ll. The Government recently increased the duty on mid-sized cars.
Correct answer: D. Statement II is the cause and statement I is its effect.
- A. Statement I is the cause and statement II is its effect.
- B. Both the statements I and II are effects of some common cause.
- C. Both the statements I and II are independent causes.
- D. Statement II is the cause and statement I is its effect.
Explanation
In this logical reasoning question, we are examining the cause and effect relationship between the two statements. Statement II states that the government has increased the duty on mid-sized cars, which would logically increase production costs for car manufacturers. In response to this increased cost, car manufacturers would raise the prices of mid-sized cars, as indicated in Statement I.Therefore, Statement II (government increased duty) is the cause, and Statement I (car manufacturers increased prices) is the effect.Other options are incorrect because they either suggest that the price increase caused the duty increase, both are effects of a common cause, or both occurred independently, none of which align with the logical progression from cause to effect in the given statements.
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Cause and effect questions examine whether one event produces another, whether both arise from a common factor, or whether their connection is only coincidental. They involve identifying preceding and resulting events, separating correlation from causation, and judging whether the stated evidence supports a direct, possible or unlikely relationship.
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