The price of tomato increases by 10%. The consumption of tomato decreases by 15%. What is the percentage change in the
expenditure on tomatoes?
This questions was previously asked in
SSC MTS 19th July 2022 Shift-2
8% decrease
Incorrect Answer7.5% decrease
Incorrect Answer6.5% decrease
Correct Answer7% decrease
Incorrect AnswerExplanation:
- Initial Situation:
- Price of tomatoes increases by 10%.
- Consumption decreases by 15%.
- Expenditure Calculation:
- Let's assume the initial price is 1 unit, and the consumption is 1 unit.
- Initial expenditure = Price × Quantity = 1 × 1 = 1 unit.
- New price = 1 + 10% of 1 = 1.1 units.
- New consumption = 1 - 15% of 1 = 0.85 units.
- New expenditure = New price × New consumption = 1.1 × 0.85 = 0.935 units.
- Percentage Change in Expenditure:
- Change = New expenditure - Initial expenditure = 0.935 - 1 = -0.065 units.
- Percentage change = (Change / Initial expenditure) × 100 = (-0.065 / 1) × 100 = -6.5%.
- Correct Option:
- Option 3: 6.5% decrease
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By: santosh