Percentage Practice Test 4 with solutions

Question : 36 of 40

Marks: +1, -0

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 the expenditure on the commodity?

4% increase
4% decrease
8% increase
8% decrease

Validate

Solution:

Let price of a commodity be Rs. 100 and its consumption be 100, then
Now, decrease in commodity = 100 × 100 – 80 × 120 = Rs. 400
Hence, decrease percentage

={400×100}/{100×100}=4%

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