6 Views

Question : The price of an edible oil is increased by 25%. To maintain the budget, Sushma reduces the consumption of this oil by 20%. The increase in expenditure due to this edible oil is:

Option 1: 0%

Option 2: 1%

Option 3: 2%

Option 4: 3%


Team Careers360 23rd Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: 0%


Solution : Increase in price = 25%
Decrease in consumption = 20%
For successive percentage change use the following formula,
$x+y+\frac{xy}{100}$, where $x$ and $y$ are percentage increases or decreases, if increases take positive and if decreases take negative.
Required change in Expenditure = 25 + (–20) + $\frac{(25)(–20)}{100}$ = 25 – 20 – $\frac{500}{100}$ = 5 – 5 = 0%
It means no change will take place in expenditure.
Hence, the correct answer is 0%.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books