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CLAT CLAT Solved Paper-2019

  • question_answer
    The Municipality of a town increases water tax by 20% and water consumption decreased by 20%. Then, the percentage of increase or decrease in the monthly expenditure is

    A) 4% increase       

    B) 4% decrease

    C) 5% increase      

    D) 5% decrease

    Correct Answer: B

    Solution :

    Sol.      [b] Increase in water tax (x) = 20% Decrease in water consumption (y) = 20% \[\therefore \] Net change in monthly expenditure \[\left[ x-y+\,\frac{(x)(-y)}{100} \right]\]% \[\left( 20-20+\frac{(20)(-20)}{100} \right)\]% \[=\,-\,\frac{400}{100}\,\]% = - 4% \[\therefore \]There is net decrease of 4% in monthly expenditure.


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