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Read the two statements. Statement I: The government sharply increased the tax on petrol and diesel. Statement II: The prices of vegetables and food grains in the local market rose in the following weeks. Which of the following best describes the relationship between the two statements?

Competition practiceLogical / Critical
  • ABoth are effects of independent causes
  • BBoth statements are independent of each other
  • CStatement II is the cause and Statement I is its effect
  • DStatement I is the cause and Statement II is its effect

Step-by-Step Solution

Higher fuel taxes raise transport costs, which push up market prices of food, so Statement I is the cause and Statement II is its effect.
Answer: D) Statement I is the cause and Statement II is its effect

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