Question

Choose the inference that can be inferred from the given statement by selecting the right option
Statement:
Cost of an article is first increased by \(10\%\) and then decreased by \(10\%\).
Inferences:
I. The final cost is lesser than the original cost.
II. The final cost is same as the original cost.

• A. Only inference I follows
• B. Only inference II follows
• C. Both inferences I and II follow
• D. Neither inference I nor inference II follows

Answer 1

The Correct Option is A

Step 1: Let the original cost be x: 

• After increasing the cost by 10%, the new cost becomes x × 1.1.
• After decreasing this new price by 10%, the new price becomes x × 1.1 × 0.9 = x × 0.99.
• Since 0.99x < x, the final cost is less than the original cost.

Final Conclusion: Inference I is correct, and inference II is incorrect.