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Question

Due to increase of 10% in the price of laptops a shopkeeper reduces its deal of laptop by 10%. What was the effect on his expenditure on account of laptops?

A
2.50% decrease
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B
2.20% decrease
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C
1% decrease
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D
1.21% decrease
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Solution

The correct option is C 1% decrease
Let initial price of a laptop was X Rs and number of laptop deals was Y.

So, Initial total expenditure =X×Y=XY Rs

Now, price increased by 10%.

So, New price =X+10% of X=1.1X

Number of laptop deals decreased by 10%

Number of laptop deals=Y10% of Y=0.9Y

New total expenditure =1.1X×0.9Y=0.99XY Rs

Decrease in expenditure =XY0.99XY=0.01XY Rs

Decrease in percentage=Decrease×100Initial Expenditure=0.01XY×100XY=1% decrease

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