Read the following statement carefully and identify the conclusion that follows.
Statement: The government has increased import duty on luxury cars.
Conclusions:
I. Imported luxury cars will become more expensive.
II. Local car manufacturers will stop making budget cars.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Only Conclusion I follows.
Conclusions:
I. Follows (When import duty increases, cost of importing rises, so prices of imported luxury cars will increase)
II. Does not follow (The statement gives no information about local manufacturers or their production decisions)