Two statements A and B are given. There may be a cause-and effect relationship between the two statements. These two statements may be the effect of the same cause or independent causes. These statements may be independent causes without having any relationship. Read both the statements and select the appropriate option.

Statements:

A) KBCL decided to sell their oil to Alliance.

B) Alliance has raised the procurement price of oil from the last month.

Solution

Given the information in the statements: A) KBCL decided to sell their oil to Alliance. B) Alliance has raised the procurement price of oil from the last month. Analyzing the relationship: • If Alliance raised the procurement price of oil, it might make it a more attractive buyer to suppliers, including KBCL. Thus, Alliance raising the procurement price could incentivize KBCL to decide to sell their oil to Alliance because of the better terms or higher prices being offered. Based on this reasoning, B could be the cause, making Alliance a more appealing partner for KBCL, and A could be the effect, where KBCL decides to sell their oil to Alliance because of the increased procurement price. Therefore, option 2 (B is the cause and A is the effect) seems to be the most appropriate choice.