UPSC Prelims 1996 · General Studies

Question 136: Basic Numeracy

If the price of a television set is increased by 25%, then by what percentage should the new price be reduced to bring the price back to the original level?

a15%

b25%

c20%

d30%

AnswerThe answer is (c).

Let the original price be 100. After a 25% rise it is 125. To bring it back to 100, the cut must be 25 out of 125, which is 20%. A 25% cut would take 125 down to only 93.75. Remember: the percentage cut needed is always smaller than the rise, since it is taken on the larger price.

Why each option is right or wrong

(a) A 15% cut of 125 gives 106.25, not 100.
(b) A 25% cut of 125 gives 93.75, not 100.
(c) Right: 25/125 = 20%.
(d) A 30% cut of 125 gives 87.5, not 100.

Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 1996, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.