Question

The annual production in cement industry is subject to business cycles. The production increases for two consecutive years consistently by 1818?

• A. $24$ % increase
• B. $25$ % increase
• C. $42$ % increase
• D. $45$ % increase

Answer 1

Answer: (C)

$42$ % increase

After every $2$ years $18$% increase/year third year $12$% decrease

Base year is $2008$

$2008+2=2010$

In $2010,$ effect$=18+18=36$

$2010+1=2011$

In $2011$, effect$=36-12=24$

$2012$ effect$=24+18=42$

$\therefore$ In $2012$, total effect will be $42$% increase.