The price of a commodity is increased by 36% and the quantity purchased is decreased by 30%. What is the percentage increase/decrease in the amount spent on the commodity?
Answer & explanation
Correct answer: option 4
Earlier Later
Price 25 : 34 [36% = \(\frac{9}{25}\)]
Quantity 10 : 7 [ 30% = \(\frac{3}{10}\)]
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Expenditure 250 : 238 [Exp.= Price x Quantity]
Difference = 12R
Effect on Exp. = \(\frac{12}{250}\) × 100 = 4.8% decrease