If a person increases his expenditure budget by 25% and the price of items, he purchases gets reduced by 10%, then what will be the increase in his purchasing capacity?
Answer
Correct Answer : a ) \(38{8 \over 9} \ \)%
Explanation :Purchasing capacity of a person is the total item he can buy for his consumption in a certain price.
The total consumption a person is doing is his purchasing capacity
We know,
25%=\(1 \over 4\) and 10%=\(1 \over 10\)
Let the initial expenditure was 4x
So, final expenditure will be 5x
Let the initial price of items was 10y
So, final price of items will be 9y
We know
Expenditure = Price × consumption
Thus,
% Increase in consumption=\({{{5x \over 9y}-{4x \over 10y}}\over {4x \over 10y}}×100\)=\({{50-36} \over {9×4}}×100\)
⇒\(1400 \over 36\)=\(38{8 \over 9}\) %
Hence, (a) is the correct answer.
Such type of question is asked in various government exams like SSC CGL, SSC MTS, SSC CPO, SSC CHSL, RRB JE, RRB NTPC, RRB GROUP D, RRB OFFICER SCALE-I, IBPS PO, IBPS SO, RRB Office Assistant, IBPS Clerk, RBI Assistant, IBPS RRB OFFICER SCALE 2&3, UPSC CDS etc.
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Indigenous
Originating in a particular country or region.
Native to a particular country or region.
Produced, Grown, Developed or occurring naturally in a region.
If we refer to something or someone as indigenous, it means that those things belong to the country in which they are found instead of being imported or brought from an external country.
"We went to the farm and saw many indigenous varieties of Apple."
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