Statement 1: An electric lamp connected in series with a variable capacitor and AC source, its brightness increases with increase in capacitance.Statement 2: Capacitive reactance decreases with increase in capacitance of capacitor.

Capacitive reactance XC=1/ωC. When capacitance (O increases, the capacitive reactance decreases. Due to decrease in its values, the current in the circuit will increase I=ER2+XC2 and hence brightness of source (or electric lamp) will also increase.