In the question below, a statement is given, followed

Solution

Assumption I is implicit: The statement suggests that cinema halls need to "upgrade" to "justify" their prices because of the "rise of high-quality digital streaming." This implies a comparison is being made where streaming is currently high-quality enough to challenge the value proposition of a standard cinema experience. If streaming weren't a high-quality competitor, the "justification" via upgrades wouldn't be framed as a necessity. Assumption II is not implicit: The statement actually suggests that audiences will still go to cinema halls if the technology is upgraded to a premium level. It focuses on the quality of the tech, not a total loss of interest in the large-screen format itself. Conclusion: Only the first assumption is a necessary premise for the statement to be logical.