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CAT Preparation Community 4y ago

In the year 2000, the luxury car industry had two car manufacturers Maruti and Honda with market shares of 25% and 75% respectively. In 2001, the overall market for the product increased by 50% and a new player BMW also entered the market and captured 15% of the market share. If we know that the market share of Maruti increased to 50% in the second year, the share of Honda in that year was: ans. 35% why we havn't considered the production increment by 50%

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Akarsha Mandala 4y ago

Let the total production in the year 2000 be '1000' Maruti = 250 Honda = 750 It is mentioned, in 2001 production increased by 50%. Total production in 2001 = 1500 BMW = 0.15*1500 = 225 Maruti = 0.5*1500 = 750 Honda = 1500 - 750 - 225 = 525 Honda % = 525/1500 * 100 = 35% Hope this helps!

Aditya Tiwari 1y ago

Exactly i thought that too , why they aren't considering that 50% hike , which should make 100(in 2000) to 150(in 2001) and ,then shares should be divided as 15% for BMW, 50% increase for Maruti makes shares chnge from 25% to 37.5% and rest goes to Honda that is 97.50% and then we should find comparison btw shares of Honda from 2000 that is 75% to 97.5% so it should be an increment of 30% . Can Any one tell wether i am right or wrong ??

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