Question

Refer to the bar chart above and answer the questions that follow.
If in the year 1987-88, diamond exports which was 25% of total exports decreases by 20%, then the trade gap will:

• A. decrease by 40%
• B. increase by 40%
• C. increase by 80%
• D. decrease by 80%
• E. None of these

Answer 1

The correct option is C increase by 80%

In year 1987-88, Total exports = Rs.800 crore
Diamond exports = 0.25 X 800 = Rs. 200 crore
Decrease = 0.20 X 200 = Rs. 40 crore $\therefore$ New exports = 800 - 40 = 760
Trade gap = 850 - 760 = Rs. 90 crore
$\therefore$ Increase in trade gap = $\frac{90-50}{50}$ = $\frac{40}{50}$ = 80%. Hence, [c].