Question:
I. Prices of toys in the market have gone down.
II. Government has reduced import duty on toys.
I. Prices of toys in the market have gone down.
II. Government has reduced import duty on toys.
II. Government has reduced import duty on toys.
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When identifying cause-effect, check the time order and logical connection — a policy change affecting cost usually precedes and explains a market price change.
Updated On: Aug 11, 2025
- I is the main cause and II is the main effect
- I is effect but II is not the main cause
- II is the main cause and I is the main effect
- II is an effect but I is not the main cause
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The Correct Option is C
Solution and Explanation
A reduction in import duty on toys by the government makes importing toys cheaper.
This decreased cost of imports allows sellers to lower the market prices, leading to the observed drop in toy prices.
Thus, the government's action (II) is the main cause, and the fall in prices (I) is the main effect.
This decreased cost of imports allows sellers to lower the market prices, leading to the observed drop in toy prices.
Thus, the government's action (II) is the main cause, and the fall in prices (I) is the main effect.
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