Question : Directions: Study the following graph and answer the question.
If the imports of company X in 2007 were increased by 40%, what would be the ratio of exports to the increased imports?
Option 1: 1.25
Option 2: 1.75
Option 3: 0.25
Option 4: 0.75
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Correct Answer: 1.25
Solution :
As per the given graph,
Let the exports and imports of company X in 2007 as $x$ and $y$.
$⇒x = 1.75y$
The imports of company X in 2007 were increased by 40%.
The new imports of company X in 2007 after the increase of 40% = $(1+\frac{40}{100})y=1.4y$
$\therefore$ The required ratio $=\frac{x}{1.4y}=\frac{1.75y}{1.4y}=1.25$
Hence, the correct answer is 1.25.
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