A company had an export-import ratio of <span class="math-inline" data-latex-source="175:100" data-display-mode="false" contenteditable="false"><span class="katex"><span class="katex-mathml"><math xmlns="http://www.w3.org/1998/Math/MathML"><semantics><mrow><mn>175</mn><mo>:</mo><mn>100</mn></mrow><annotation encoding="application/x-tex">175:100</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.6444em;"></span><span class="mord">175</span><span class="mspace" style="margin-right:0.2778em;"></span><span class="mrel">:</span><span class="mspace" style="margin-right:0.2778em;"></span></span><span class="base"><span class="strut" style="height:0.6444em;"></span><span class="mord">100</span></span></span></span></span> in 2007. If imports rise by <span class="math-inline" data-latex-source="40\%" data-display-mode="false" contenteditable="false"><span class="katex"><span class="katex-mathml"><math xmlns="http://www.w3.org/1998/Math/MathML"><semantics><mrow><mn>40</mn><mi mathvariant="normal">%</mi></mrow><annotation encoding="application/x-tex">40\%</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.8056em;vertical-align:-0.0556em;"></span><span class="mord">40%</span></span></span></span></span> while exports stay unchanged, what is the new ratio of exports to imports?

Question

A company had an export-import ratio of <span class="math-inline" data-latex-source="175:100" data-display-mode="false" contenteditable="false"><span class="katex"><span class="katex-mathml"><math xmlns="http://www.w3.org/1998/Math/MathML"><semantics><mrow><mn>175</mn><mo>:</mo><mn>100</mn></mrow><annotation encoding="application/x-tex">175:100</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.6444em;"></span><span class="mord">175</span><span class="mspace" style="margin-right:0.2778em;"></span><span class="mrel">:</span><span class="mspace" style="margin-right:0.2778em;"></span></span><span class="base"><span class="strut" style="height:0.6444em;"></span><span class="mord">100</span></span></span></span></span> in 2007. If imports rise by <span class="math-inline" data-latex-source="40\%" data-display-mode="false" contenteditable="false"><span class="katex"><span class="katex-mathml"><math xmlns="http://www.w3.org/1998/Math/MathML"><semantics><mrow><mn>40</mn><mi mathvariant="normal">%</mi></mrow><annotation encoding="application/x-tex">40\%</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.8056em;vertical-align:-0.0556em;"></span><span class="mord">40%</span></span></span></span></span> while exports stay unchanged, what is the new ratio of exports to imports?

Option A

1.20

Option B — Correct answer

1.25

Correct choice.

Option C

1.30

Option D

1.40

Explanation

Take exports $=175x$ and imports $=100x$. After a $40\%$ increase, imports become $140x$. The new ratio is $\frac{175x}{140x}=1.25$.

Chapter Mock 15: Data Interpretation