Directions: A statement is followed by two inferences I and II. You have to consider the statement to be true even if it seems to be at variance from the commonly known facts. You have to decide which of the given inferences, if any, follow from the statement.

Statement: The price of Electronic Appliances are increasing.

Inference:

1) Demand is increasing the price of the appliances are increases.

2) Companies are increasing the price of the appliances due to increase in input raw material cost.