If the price of a commodity is decreased by 20% and its consumption is increased by 20%, what will be the increase or decrease in expenditure on the commodity?
A. 4% increase
B. 4% decrease
C. 8% increase
D. 8% decrease
Answer: Option B
Solution(By Examveda Team)
Let the initial expenditure on the commodity be Rs. 100. Now, the price decreases by 20%, Current Price = (100 - 20% of 100) = Rs. 80. Same time due to decrements in price 20% consumption has been increased. So, Current expenses on commodity = (80 + 20% of 80)= Rs. 96. Here, the initial expenditure was Rs. 100 which became 96 at the end, it means there is 4% decrements in the expenditure of the commodity. Mind Calculation Method: 100 === 20%↓(Decrements in Price) ===> 80 === 20%↑(Increment in Consumption) ===> 96.Thus, there is a decrements of 4%
This Question Belongs to Arithmetic Ability >> Percentage
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Let the initial expenditure on the commodity be
x
.
Now, the price decreases by
20
%
.
Current price
=
(
x
−
20
%
of
x
)
=
0.8
x
.
Due to decrement in price,
20
%
consumption has increased.
So, current expenditure on commodity
=
(
0.8
x
+
20
%
of
0.8
x
)
=
0.96
x
∴
Percentage change in expenditure on the commodity
=
0.96
x
−
x
x
×
100
=
−
4
%
Hence, there is
4
%
decrement in the expenditure on the commodity
cant understood
the formula is ((X/10))^2%
20-20-((20*20)/100) = -4 ie; 4% decrease