In each of the following questions, two columns are

Solution

The correct pairs are AE, BF, and CD. AE: A tells us about the high cost of labour, which increases the production cost. E tells us what else it does, it results in a high price for the commodity. We connect the same parts of speech using AND. INCREASES (third person singular verb) connects well with another verb of identical form, LEADS, in the sentence. "The high cost of labour eventually increases the production cost and leads to a high price for the commodity." BF: B tells us about the shortage of agricultural produce and the damage during its transportation, both of which cause something. F tells us that they cause scarcity, leading to high inflationary pressures. We need a noun after the indefinite article A. The word SCARCITY in F fulfils this requirement. "The agricultural scarcity and the damage in transit create a scarcity causing high inflationary pressures." CD: C tells us that understanding inflation is important for investing. D provides the reason why it is important. "Understanding inflation is crucial to investing because inflation can reduce the value of investment returns." Thus, D is the right answer.