Model 6 Consumption & Remaining Practice Questions Answers Test With Solutions & More Shortcuts

Question : 1 [SSC CGL Tier-II 2015]

Water tax is increased by 20% but its consumption is decreased by 20%. Then the increase or decrease in the expenditure of the money is

a) 4% increase

b) 4% decrease

c) 5% decrease

d) No change

Answer: (b)

Using Rule 4,

If a number is increased by a% and then it is decreased by b%, then resultant change in percentage will be $(a - b - {ab}/100)$% (Negative for decrease, Positive for increase)

Percentage effect

= $(20 - 20 + {20 × -20}/100)%$ = – 4%

Negative sign shows decrease.

Question : 2 [SSC CGL Prelim 2008]

If the price of a commodity is increased by 50%, by what fraction must its consumption be reduced so as to keep the same expenditure on its consumption ?

a) $2/3$

b) $1/3$

c) $1/4$

d) $1/2$

Answer: (b)

Using Rule 8,

Required fractional decrease

= $R/{100 + R} = 50/{100 + 50} = 1/3$

Question : 3 [SSC CGL Prelim 2007]

The price of a certain item is increased by 15%. If a consumer wants to keep his expenditure on the item the same as before, how much per cent must he reduce his consumption of that item ?

a) 10$20/23$%

b) 13$1/23$%

c) 15%

d) 16$2/3$%

Answer: (b)

Using Rule 8,

If the income of a man is A% more than another man, then the income of another man is less in comparison to the 1st man by

$(A/{(100 + A)}×100)$%

If the price of a commodity increases by R%, then reduction in consumption, not to increase the expenditure is given by

$(R/{100 + R} × 100)$%

= $15/{100 + 15} × 100 = 15/115 × 100$

= $300/23 =13{1}/23$%

Question : 4 [SSC CPO S.I.2004]

If the price of tea is increased by 20%, by how much per cent the consumption of tea be reduced so that there is no increase in the expenditure on it ?

a) 8$1/3$%

b) 20%

c) 83$1/3$%

d) 16$2/3$%

Answer: (d)

Using Rule 8,

Reduction in consumption

= $(R/{100 + R}× 100)%$

= $(20/120×100)% = 50/3% = 16{2}/3%$

Question : 5 [SSC SO 2005]

The price of petrol is increased by 25%. By how much per cent a car owner should reduce his consumption of petrol so that the expenditure on petrol would not be increased ?

a) 20%

b) 30%

c) 25%

d) 50%

Answer: (a)

Using Rule 8,

Required per cent = ${25 × 100}/125 = 20%$

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