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    Question

    The price of a product is increased by 20%, and a person

    decreases his consumption by 10%. Find the percentage increase or decrease in his expenditure.
    A 8% increase Correct Answer Incorrect Answer
    B 12% decrease Correct Answer Incorrect Answer
    C 18% decrease Correct Answer Incorrect Answer
    D 24% increase Correct Answer Incorrect Answer

    Solution

    ATQ,

    Let the original amount of the product bought by the person be ‘x’ units and the price of that product be Rs. ‘y’ per unit.

    Initial expenditure = Rs. xy

    New increased price = Rs. 1.20y

    New decreased consumption = 0.90x

    New expenditure = 1.20y × 0.90x = Rs. 1.08xy

    Image

    Hence, the expenditure increases by 8%.

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