Difficulty: Easy
Correct Answer: Re. 1.33
Explanation:
Introduction:
Again, a fixed budget with a price cut increases quantity. We form equations using unit prices before and after a 25% reduction and equate the difference in quantities to 4.
Given Data / Assumptions:
Concept / Approach:
Original count = 16/p; new count = 16/(0.75p) = 64/(3p). The difference equals 4; solve for p.
Step-by-Step Solution:
64/(3p) − 16/p = 4(64 − 48)/(3p) = 4 ⇒ 16/(3p) = 4 ⇒ 16 = 12p ⇒ p = 4/3Original price = Rs 1.333... = Re. 1.33 (rounded)
Verification / Alternative check:
At p = 4/3, old count = 12; new price = 1; new count = 16; increase = 4, consistent.
Why Other Options Are Wrong:
1.0/1.5/1.6 do not satisfy the exact difference of 4 at Rs 16.
Common Pitfalls:
Using 25% of Rs 16 (budget) incorrectly; rounding too early.
Final Answer:
Re. 1.33
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