Multiple choice

Effect: The prices of petroleum products have increased by about twenty percent in the past two months. Which of the following can be a probable cause of the above effect?

  1. The prices of food grains and vegetables have shot up by more than thirty percent.

  2. The truck owner's association has decided to increase their rent by about 20 percent with immediate effect.

  3. The prices of crude oil in the international market have increased considerably during the past few weeks.

  4. People have decided to demonstrate against the Govt's apathy towards rise in prices of essential commodities.

  5. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The increase in crude oil prices in the international market directly affects petroleum product prices domestically. Since India imports a significant portion of its crude oil, any increase in international prices is passed on to consumers. Food grain prices and truck rentals are effects rather than causes, and public demonstrations are reactions to price increases, not causes.

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