GATE 2022 AR — Planning – Question 56
Last month each house cost₹2500000. Monthly sales Q, in thousands, follow Q=6685−0.00158P, where P is house price in rupees. If price rises 20%, find percentage decrease in sales to two decimals.
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Show answer and explanation
Correct answer: 27.00 to 30.00
Explanation
Initial sales are 6685−0.00158×2500000=2735 (thousand). New price is₹3000000 and sales become 6685−4740=1945. The decline is 790, so percentage decrease is 790/2735×100=28.88483%, or 28.88%. Divide by initial sales rather than the new sales.