Discussion
Following bar chart presents supply as a percentage of demand of a product and demand as a percentage of capacity of the industry to produce the same product. All the values are multiples of 5.
| Year | Supply of demand | Demand of capacity |
|---|---|---|
| 2003 | 65 | 80 |
| 2004 | 70 | 90 |
| 2005 | 60 | 80 |
| 2006 | 90 | 65 |
If product supply for the year 2005 is 6000 kg. then the total capacity of the product is (in kg):
Answer: A
The total capacity is 12500 kg.
In 2005, supply was 60% of demand and demand was 80% of capacity. Work back from the supply.
\[ \begin{aligned} \text{demand} &= \frac{6000}{0.60} = 10000 \\ \text{capacity} &= \frac{10000}{0.80} = 12500 \end{aligned} \]
10000 is the demand, the trap for anyone who stops after the first step. 16500 does not follow from the 2005 values. In one line, capacity is supply divided by both percentages: \(6000 \div (0.6 \times 0.8) = 12500\).
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