Statement (A) The Government has imported large quantities of sugar as per trade agreements with other countries. Statement (B) The prices of sugar in the domestic market have fallen sharply in recent months.
Correct answer: A. Statement A is the cause and statement B Is its effect.
- A. Statement A is the cause and statement B Is its effect.
- B. Statement B is the cause and statement A is its effect
- C. Both statements are independent causes.
- D. Both statements are effects of independent causes.
Explanation
In logical reasoning, there are questions that come under the topic called cause and effect. In these question, they give us two statements, we have to relate those statementsand sometimes they do have no relation(In this case , we will select option D, Both statements are effects of independent causes.Option is C ( Both statements are independent causes) is never the right option, because causes don't exist without effect.In this question they have given two statements and they do relate because when the government has imported large quantities of sugar, there is a bulk of sugaravailable in the domestic market and the price will be low. This is the rule of economics that whenever something is in bulk, the price gets low and wheneversomething is scarce, the price goes high.So the first statement is cause due to which an effect is seen that is statement B
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About Cause and Effect
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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