- AStatement II is the cause and Statement I is its effect
- BBoth statements are effects of a common cause
- CStatement I is the cause and Statement II is its effect
- DBoth statements are independent causes
Step-by-Step Solution
The price cut came first and the rise in sales followed it, which is the expected response of buyers to a cheaper product. Sales that had not yet happened could not have produced the earlier price cut, so I is the cause and II the effect.
Answer: C) Statement I is the cause and Statement II is its effect