The price of wheat, per kg, is increased by 17.5% and the quantity of wheat bought is decreased by 10%. What is the percentage change in the amount spent on wheat?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Increase, 5.75%.
Let original price = ₹100/kg
New price = 100 + 17.5 = ₹117.5
Original quantity = 1 kg
New quantity = 1 − 10% = 0.9 kg
Original cost = 100 × 1 = ₹100
New cost = 117.5 × 0.9 = ₹105.75
% change = × 100 = 5.75% increase