In 1987-88:
The total income for the high income category households = 5000 x 75000 = Rs. 37,50,00,000 The total income for the upper middle class households = 10000 x 50000 = Rs. 50,00,00,000 Thus, the required ratio for 1987-88 = 375000000/500000000 = 3 : 4 = 0.75 It is given that the number of households in each category is equally distributed in all the regions.
Thus, there were 5000/4 = 1250 high income household in each region in 1987-88.
Similarly, there were 10000/4 = 2500 upper middle class households in each region in 1987-88.
In the year 1994-95:
The percentage growth in high income households in the four regions is 245%, 425%, 175% and 150% Thus, the number of high income households throughout the country in 1994-95 is: 1250 x (3.45 + 5.25 + 2.75 + 2.5) i.e. 1250 x 13.95 i.e 17438 households (approx) The percentage growth in upper middle class households in the four regions is 200%, 340%, 120% and 140%
Thus, the number of upper middle class households throughout the country in 1994-95 is: 2500 x (3 + 4.4 + 2.2 + 2.4) i.e. 2500 x 12 i.e 30000 households (approx). Therefore Total income for the high-income households = 17438 x 1.90 x 75000 = Rs. 2,48,49,15,000. Total income for upper middle class = 30000 x 1.6 x 50000 = Rs. 2,40,00,00,000 Thus, the required ratio for 1994-95 = 2484915000/2400000000 = 1.035 Thus, the ratio has increased in absolute terms by 1.035 - 0.75 = 0.285 Hence, the required percentage increase = (0.285/0.75) x 100
= 38%
The closest option is 36%.
Hence, option 2.