Selected MCQ

Current Question
A man reduces the price of an article by 20% and then increases it by 25%. What is the net effect?
  • A. 5% increase
  • B. 5% decrease
  • C. No change
  • D. 10% increase
Correct Answer: C
Explanation:
0.8 × 1.25 = 1, so no change.
Related Question 1
A person reduces consumption by 10% when the price increases by 20%. What is the effect on expenditure?
  • A. 8% increase
  • B. 8% decrease
  • C. No change
  • D. 10% increase
Correct Answer: A
Explanation:
1.2 × 0.9 = 1.08 → 8% increase.
Related Question 2
The price of an article increases by 30% in the first year and decreases by 20% in the next year. What is the net change?
  • A. Rs. 1500
  • B. Rs. 1800
  • C. Rs. 2000
  • D. Rs. 2400
Correct Answer: C
Explanation:
Net factor = 1.3 × 0.8 = 1.04 → 4% increase.
Related Question 3
If the price decreases by 20% and consumption increases by 25%, what is the effect on expenditure?
  • A. No change
  • B. 5% increase
  • C. 5% decrease
  • D. 10% increase
Correct Answer: A
Explanation:
0.8 × 1.25 = 1 → no change.
Related Question 4
A tax is reduced by 20% and consumption increases by 10%. What is the net effect?
  • A. 20%
  • B. 18%
  • C. 15%
  • D. 12%
Correct Answer: D
Explanation:
Net effect = 0.8 × 1.10 = 0.88 → 12% decrease.
Related Question 5
A tax is reduced by 20% and consumption increases by 15%. What is the effect on revenue?
  • A. Increases by 8%
  • B. Decreases by 8%
  • C. No change
  • D. Increases by 10%
Correct Answer: B
Explanation:
Net effect = 0.8 × 1.15 = 0.92 → 8% decrease.