The price of onion increases by 12 5 The consumption of onion also increases by 12 5 What is the app...........

Quantitative Aptitude (MTS) Percentage

The price of onion increases by 12.5%. The consumption of onion also increases by 12. 5%. What is the approximate percentage

increase in the expenditure on account of the purchase of onions?

This questions was previously asked in

SSC MTS 13th July 2022 Shift-3

29.12%

24.82%

28.44%

26.56%

- When the price of an item increases, and the quantity purchased also increases, the total expenditure will change.

- Here, both the price and quantity of onions increase by 12.5%.

- Expenditure can be calculated by multiplying price by the quantity.

- If both components increase by 12.5%, the overall expenditure increase is not a simple addition but rather compounded.

- The formula to calculate the increase in expenditure is:

$$(1 + \text{Price Increase})(1 + \text{Quantity Increase}) - 1 $$

$$= (1.125)(1.125) - 1 = 1.265625 - 1 = 0.265625 $$

- The increase in expenditure is approximately 26.56%.

Option 4: 26.56% is the correct answer.

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