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Q:

If the price of a commodity is decreased by 20% and its consumption is increased by 10%, what will be the increase or decrease in the expenditure on the commodity?

A) increase 12% B) decrease 12%
C) increase 16% D) decrease 16%

Answer:   B) decrease 12%



Explanation:

Given the price of a commodity is decreased by  p = 20%

And its consumption is increased by q = 10%

Now, required increase or decrease in the expenditure on the commodity can be 

p + q + pq/100 = -20 + 10 - 200/100 = -10 - 2 = -12%.

 

Hence, decrease in the expenditure = 12%

 

Subject: Percentage
Exam Prep: AIEEE , Bank Exams , CAT , GATE
Job Role: Analyst , Bank Clerk , Bank PO
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