UPSC Prelims 1997·GS1·economy·basic concepts

The following table shows the per cent change in the number of sales (in rupees) at different retail stores in a given neighbourhood market in the period 1993 to 1995: Retail Store Percent Change 1993 to 1994 1994 to 1995 Anshu +10 -10 Borna-20 +9 Calpo +5 +12 Dilip -7 -15 Elegant +17 -8 If the sales at Anshu store amounted to Rs. 8 lakhs in 1993, then the number of sales (in lakhs of rupees) at that store in 1995 was

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  1. A7.92Correct
  2. B8.00
  3. C8.80
  4. D9.68

Explanation

To find the sales for Anshu store in 1995, we apply the percentage changes successively to the 1993 sales figure of 8 lakhs. Step 1: Calculate sales for 1994. The store saw a 10 percent increase. 10 percent of 8 lakhs is 0.8 lakhs. So, sales in 1994 were 8 plus 0.8 which equals 8.8 lakhs. Step 2: Calculate sales for 1995. The store saw a 10 percent decrease from the 1994 level. 10 percent of 8.8 lakhs is 0.88 lakhs. Subtracting this from the 1994 sales, we get 8.8 minus 0.88 which equals 7.92 lakhs. Alternatively, using the successive percentage formula: 8 multiplied by 1.10 multiplied by 0.90 equals 7.92. Therefore, the correct option is A.
economy: The following table shows the per cent change in the number of sales (in rupees) at different retail stores in a given n

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