MAT Exam 2021 Paper

Concept:B's quoted price remains fixed throughout, so use it as the common reference in the two ratios.Explanation:Let B's quoted price be $x$ lakh.Initially, $A : B = 7:4$, so A's initial quote was $\frac{7x}{4}$ lakh.A decreases its quote by ₹1 lakh, so A's final quote becomes $\frac{7x}{4} - 1$ lakh.The final ratio is $A : B = 3:4$. Therefore:$$\frac{\frac{7x}{4} - 1}{x} = \frac{3}{4}.$$Cross-multiplying:$$\frac{7x}{4} - 1 = \frac{3x}{4}.$$Multiplying by 4:$$7x - 4 = 3x.$$So, $4x = 4$, giving $x = 1$.Hence, B's winning bid was ₹1 lakh.Answer:₹1 lakh (Option D).