Quantitative Aptitude :: Percentage - Discussion
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Choose the correct option.
The electricity charges were increased by the company by 20%. To counter the increase, consumer decided to save power by 20%. What will be the impact on the company's revenue?
ANo changes
B4% Increase
C4% Decrease
D34
ENone of these
Answer: Option (Login/Signup)
Show Explanation
=20-24
=-4
so, 4 % decrease
Asked In ::
effective %= 20-20-(20*20)/100
=20-24
=-4
so, 4 % decrease
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STEP-BY-STEP
Let they charge 100Rs for 1 unit And the consumption be 1 unit so company's revenue was 100Rs
Now when the prices increase by 20% so the charges for 1 unit are 120Rs.
Decrease in consumption is 20% so now consumption is only 0.8units
Expenditure for this 0.8 units is 0.8*120=96Rs
Earlier people were paying 100Rs now only 96Rs hence there is a decrease of 4Rs on 100Rs hence 4% decrease in company's revenue is there.
Now when the prices increase by 20% so the charges for 1 unit are 120Rs.
Decrease in consumption is 20% so now consumption is only 0.8units
Expenditure for this 0.8 units is 0.8*120=96Rs
Earlier people were paying 100Rs now only 96Rs hence there is a decrease of 4Rs on 100Rs hence 4% decrease in company's revenue is there.
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