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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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