Selected MCQ

Current Question
If price decreases by 30% and sales increase by 20%, what is the effect on revenue?
  • A. 10% increase
  • B. 10% decrease
  • C. 16% increase
  • D. 16% decrease
Correct Answer: D
Explanation:
Net effect = 0.7 × 1.2 = 0.84 → 16% decrease.
Related Question 1
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 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
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.
Related Question 4
If salary increases 20% then decreases 20%, net effect is ____.
  • A. Rs. 8000
  • B. Rs. 7500
  • C. Rs. 7400
  • D. Rs. 7200
Correct Answer: B
Explanation:
Net decrease = 4%.
Related Question 5
If a number increases by 30% and then decreases by 20%, net effect is ____.
  • A. 4% increase
  • B. 4% decrease
  • C. No change
  • D. 6% increase
Correct Answer: A
Explanation:
1.3 × 0.8 = 1.04 → 4% increase.