UPSC Prelims 2001·GS1·economy·basic concepts

The following table shows the percentage change in the consumption of electricity by five towns P, Q, R, S, T from 1986 to 1988: Town Per cent change from 1986 to 1987 From 1987 to 1988 P +8 -18 Q -15 +11 R +6 +9 S -7 -5 T +13 -6 If town T consumed 500,000 units in 1986, how much did it consume in 1988?

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  1. A371,000 units
  2. B531,100 unitsCorrect
  3. C551,100 units
  4. D571,100 units

Explanation

To find the consumption of town T in 1988, we must apply the percentage changes successively to the 1986 value of 500,000 units. Step 1: Calculate consumption in 1987. Town T had a 13 percent increase from 1986 to 1987. 13 percent of 500,000 is 65,000. So, 1987 consumption equals 500,000 plus 65,000 which is 565,000 units. Step 2: Calculate consumption in 1988. Town T had a 6 percent decrease from 1987 to 1988. 6 percent of 565,000 is 33,900. So, 1988 consumption equals 565,000 minus 33,900 which is 531,100 units. Therefore, Option B is the correct answer.
economy: The following table shows the percentage change in the consumption of electricity by five towns P, Q, R, S, T from 1986

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