CAT 1995 | Question: 158

Question

Market shares in four Metropolitan cities.

Period/ Products	Bombay 1993-94	Calcutta 1993-94	Delhi 1993-94	madras 1993-94
HD	20-15	35-30	20-15	20-30
CO	20-25	30-15	15-10	20-15
BN	45-40	25-35	35-35	10-10
MT	15-20	10-20	10-10	50-45

The largest percentage drop in market shares is

• A. 60% 
• B. 50%
• C. 53.3% 
• D. 20%

Answer 1

Considering only Market drops:

The product $HD$ has experienced a market drop In ${\text{Bombay}}$ $ \{(15 - 20) = -5\hspace{0.2cm} i.e \hspace{0.2cm}\dfrac{-5}{20}\times100 = \color{lightblue}{25\%}\} $, $\text{Calcutta}$ $ \{(30 - 35) = -5\hspace{0.2cm} i.e \hspace{0.2cm}\dfrac{-5}{35}\times100 = \color{lightblue}{14.28\%}\} $ & $\text{Delhi}$ $ \{(15 - 20) = -5\hspace{0.2cm} i.e \hspace{0.2cm}\dfrac{-5}{20}\times100 = \color{lightblue}{25\%}\}$.

The product $CO$ has experienced a market drop In $\text{Calcutta}$ $ \{(15 - 30) = -15\hspace{0.2cm} i.e \hspace{0.2cm}\dfrac{-15}{30}\times100 =\color{lightblue}{ 50\%}\} $ & $\text{Delhi}$ $ \{(10 - 15) = -5\hspace{0.2cm} i.e \hspace{0.2cm}\dfrac{-5}{15}\times100 = \color{lightblue}{33.33\%}\} $.

The product $BN$ has experienced a market drop In $\text{Bombay}$ $ \{(40 - 45) = -5\hspace{0.2cm} i.e \hspace{0.2cm}\dfrac{-5}{45}\times100 = \color{lightblue}{11.11\%}\} $ .

The product $MT$ has experienced a market drop In $\text{Madras}$ $ \{(45 - 40) = -5\hspace{0.2cm} i.e \hspace{0.2cm}\dfrac{-5}{40}\times100 = \color{lightblue}{12.5\%}\} $ .

So, $\color{green}{\text{the largest percentage drop in market shares was experienced by}}$ $\color{gold}{CO}$ $\color{green}{in}$ $\color{red}{\text{Calcutta}}$ $\color{green}{\text{which was}}$ $\color{blue}{\dfrac{15-30}{30} \times 100 = \dfrac{-1}{2}\times100 = 50\%}$

Comments

It is correct, but we need to find the % drop for each of them to be sure. Here, it just happened that the largest drop of 15 corresponded to the largest % drop.

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Okay Sir.. thank you for mentioning , i'll update the answer

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Answer updated