Question
In the question below, two statements (
- I and (I
- I are given. These statements may be either independent causes or may be effects of independent causes or a common cause. One of these statements may be the effect of the other statement. Read both the statements and decide which of the following answer choices correctly depicts the relationship between these two statements. Statement I: The quarterly net profit of 'Eco-Drive', a leading electric vehicle manufacturer, has surged by 25% compared to the previous fiscal year. Statement II: 'Eco-Drive' successfully launched a new budget-friendly electric sedan and expanded its fast-charging network to twenty new cities.
Solution
Analyze Statement II: This statement describes a proactive business expansion and product launch (the cause). By introducing a budget-friendly model and improving infrastructure (charging stations), the company is likely to see increased sales and market reach. Analyze Statement I: This statement describes a positive financial outcome—a surge in net profit. This is the logical effect of the successful product launch and network expansion mentioned in Statement II. Relationship: The strategic moves made by the company led to the financial gain. Therefore, Statement II is the cause and Statement I is its effect.
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