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Statement: A popular café has decided to increase the price of its coffee beverages after witnessing a continuous rise in the cost of coffee beans and
Question

Statement: A popular café has decided to increase the price of its coffee beverages after witnessing a continuous rise in the cost of coffee beans and other raw materials.
Assumptions:
I. Customers will continue to purchase coffee from the café even after the price increase.
II. The rise in the cost of raw materials has significantly affected the café’s operating expenses.
III. Increasing the price of coffee is the only way to handle the rise in costs.
Which of the following assumptions is/are implicit from the given statement?

A.

Only assumption I is implicit

B.

Only assumptions I and II are implicit

C.

Only assumption II is implicit

D.

Only assumptions II and III are implicit

E.

All assumptions are implicit

Correct option is B

I follows – Price hike assumes customers will still buy coffee.
II follows – Rising raw material cost affecting expenses is clearly mentioned.
III does not follow – No indication that price hike is the only solution.

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