The price of a pen is increased by 45% and the quantity purchased is decreased by 25%. What is the percentage increase/decrease in the amount spent on the commodity?
Answer & explanation
Correct answer: option 4
Earlier Later
Price 20 : 29 [45% = \(\frac{9}{20}\) ]
Quantity 4 : 3 [ 25% = \(\frac{1}{4}\) ]
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Expenditure 80 : 87 [Exp.= Price x Quantity]
Difference = 7 R
Effect on Exp. = \(\frac{7}{80}\) × 100 = 8.75% decrease