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Statement: In order to reduce traffic congestion in the city centre, the civic body has doubled the parking fee charged in that area. Assumptions: I. The number of vehicles driven into the city centre is sensitive to the cost of parking there.
II. A substantial number of the vehicles entering the city centre are parked in that area. Which of the assumptions is implicit in the statement?

Competition practiceLogical / Critical
  • AOnly assumption I is implicit
  • BOnly assumption II is implicit
  • CNeither I nor II is implicit
  • DBoth I and II are implicit

Step-by-Step Solution

Raising a parking fee can cut congestion only if drivers respond to the higher cost by driving in less often (I). It can also work only if a good share of the incoming vehicles actually park in that area, since a fee reaches nobody else (II). Both are taken for granted by the measure.
Answer: D) Both I and II are implicit

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